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Unformatted text preview: 1 st quarter and $67,000 in the 2 nd quarter. 7. Income taxes are expected to be 30% of income from operations. Your assistant has prepared the direct materials budget for Dert which shows the cost of Dert to be $682, 500 in the 1 st quarter and $907, 500 in 2 nd quarter. Instructions Prepare the budgeted income statement for the first 6 months of 2005 and all required supporting budgets by quarters. ( Note: Use variable and fixed in the selling and administrative expense budget.) Do not prepare the direct materials budget for Dert. (Hint: You have to calculate MOH per unit to calculate the total cost per bag. You must calculate total cost per bag to determine Cost of Goods Sold for your Budgeted Income Statement.) All budgets should be written NEATLY with appropriate headings....
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This note was uploaded on 02/25/2011 for the course ACCT 2101 taught by Professor Brooks during the Spring '08 term at LSU.
- Spring '08