very confused for the budgeted income statement! please help

Question 11 Krause Industries' balance sheet at December 31, 2019, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2019 Assets $7,500 73,500 26,210 107,210 29,840 $137,050 Current Assets Cash Accounts receivable Finished goods inventory (1,500 units) Total current assets Property, Plant, and Equipment Equipment $40,260 Less: Accumulated depreciation 10,420 Total assets Liabilities and Stockholders' Equity Liabilities Notes payable Accounts payable Total liabilities Stockholders Equity Common stock $37,190 Retained earnings 27,910 Total stockholders' equity Total liabilities and stockholders' equity $26,220 45,730 71,950 65,100 $137,050 Budgeted data for the year 2020 include the following 2020 CALCULATOR 3. PRINTER VERSION 4 BACK NEXT Somiers eury Total abilities and stockholders' equity $137,050 Budgeted data for the year 2020 Include the following. Sales budget (8,000 units at $32) Direct materials used Direct labor Manufacturing overhead applied Selling and administrative expenses 2020 Quarter 4 Total $76,800 $256,000 13,480 62,500 12,500 50,900 10,000 48,600 17,760 75,000 To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2020, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $is. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before Income taxes. In 2020, the company expects to declare and pay an $8,460 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2020. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash Within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2020, the company expects to purchase additional equipment costing $10,340 $4,846 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $8,450 on the outstanding notes payable balance plus all interest due and payable to December 31 (included in interest expense $3,500, above). Accounts payable at December 31, 2020, includes amounts due suppliers (see above) plus other accounts payable relating to manufacturing overhead of $8,530 Unpaid income taxes at December 31 will be $6,680. (a) Your answer is correct. Prepare a budgeted statement of cost of goods sold. KRAUSE INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2020 26,210 Finished Goods Inventory, 1/1/20 Prepare a budgeted statement of cost of goods sold. KRAUSE INDUSTRIES Budgeted Cost of Goods Sold For the Year Ending December 31, 2020 Finished Goods Inventory, 1/1/20 26,210 > Cost of Goods Manufactured Direct Materials Used 62,500 Direct Labor 50,900 Manufacturing Overhead Applied 48,600 162,000 Cost of Goods Available For Sale 188,210 Finished Goods Inventory, 12/31/20 45,000 Cost of Goods Sold 143,210 $ Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO Atte Prepare a budgeted multiple-step income statement for 2020. V KRAUSE INDUSTRIES Budgeted Income Statement For the Year Ending December 31, 2020 Sales Revenue Cost of Goods Sold Gross Profit 5 Selling and Administrative Expenses Income from Operations INDAILINI Interest Expense Income before Income Taxes Income Tax Expense Net Income /(Loss) Click if you would like to Show Work for this question: Open Show Work