you can ignore this question if you want i already got the answer since it took so long

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Problem 9-42 Preparation of Master Budget (LO 9-3, 9-4, 9-5)

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[The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.

		Type of Box
	C				P
Direct material required per 100 boxes:
Paperboard ($0.32 per pound)		30	pounds			70	pounds
Corrugating medium ($0.16 per pound)		20	pounds			30	pounds
Direct labor required per 100 boxes ($16.00 per hour)		0.20	hour			0.40	hour

The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 475,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours.

Advertising		31,000
Management salaries and fringe benefits		152,000
Clerical wages and fringe benefits		47,500
Miscellaneous administrative expenses		7,700
Total	$	376,200

The following selling and administrative expenses are anticipated for the next year.

The sales forecast for the next year is as follows:

	Sales Volume				Sales Price
Box type C		480,000	boxes		$	120.00	per hundred boxes
Box type P		480,000	boxes			180.00	per hundred boxes

Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 35 percent.

Problem 9-42 Part 7

PLEASE SOLVE JUST #7 PLEASE. All the other answers have been posted for convenience in solving #7 to ensure correctness. Please help it's due so soon

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)

7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.) Answer is not complete. $ 1,440,000 Sales revenue Less: Cost of goods sold Gross margin Selling and administrative expenses Income before taxes 376,200 $ 588,500 X 235,400 X $ 286,605 > Income tax expense Net income Req Req 3B Prepare the direct-material budget for paperboard. Total Box P 475,000 0.70 332,500 Paperboard Box C Production requirement (number of boxes) 475,000 Raw material required per box (pounds) 0.30 Raw material required for production (pounds) 142,500 Add: Desired ending raw-material inventory Total raw-material needs Less: Beginning raw-material inventory Raw material to be purchased Price (per pound) Cost of purchases (paperboard) 475,000 6,500 481,500 16,500 465,000 0.32 148,800 $ $ 2. Prepare the production budget for the next year. Answer is complete and correct. Box P 480,000 Sales Add: Desired ending inventory Total units needed Less: Beginning inventory Production requirements Box C 480,000 11,500 491,500 16,500 475,000 21,500 501,500 26,500 475,000 Required: 1. Prepare the sales budget for the next year. (Round "Sales price per unit" to 2 decimal places.) Answer is complete and correct. Box C Box P Total 480,000 480,000 Sales (in units) Sales price per unit $ 1.20 $ 1.80 Sales revenue $ 576,000 $ 864,000 $ 1,440,000 6. Prepare the selling and administrative expense budget for the next year. Answer is complete and correct. $ 138,000 Salaries and fringe benefits of sales personnel Advertising Management salaries and fringe benefits Clerical wages and fringe benefits Miscellaneous administrative expenses 31,000 152,000 47,500 7,700 Total selling and administrative expenses $ 376,200 5. Prepare the production-overhead budget for the next year. Answer is complete and correct. $ 14,400 64,000 Indirect material Indirect labor Utilities Property taxes Insurance Depreciation 48,000 32,000 25,000 56,000 Total production overhead $ 239,400 4. Prepare the direct-labor budget for the next year. (Do not round intermediate calculations. Round "Direct labor required per box (hours)" to 4 decimal places.) Answer is complete and correct. Box C Box P Total 475,000 475,000 0.0020 0.0040 Production requirements (number of boxes) Direct labor required per box (hours) Direct labor required for production (hours) Direct-labor rate 950 1,900 2,850 $ 16 Total direct-labor cost $ 45,600 Req Req 3B Prepare the direct-material budget for corrugating medium. Corrugating Medium Box C Box P Total 475,000 475,000 0.30 0.20 95,000 142,500 Production requirements (number of boxes) Raw material required per box (pounds) Raw material required for production (pounds) Add: Desired ending raw-material inventory Total raw-material needs Less: Beginning raw-material inventory Raw material to be purchased Price (per pound) Cost of purchases (corrugating medium) 237,500 12,500 250,000 7,500 242,500 $ 0.16 $ 38,800