Reference no: EM132977167

You have completed the budgets for the production inputs for 2020, summarized below.

Direct materials:

$30,624-Jan

$50,945-Feb

$75,547-Mar

$76,000Apr

$63,230-May

$50,584-June

Direct labour:

$30,019-Jan

$49,940-Feb

$74,055-Mar

$74,499-April

$61,981-May

$49,585-June

Manufacturing overhead:

$12,615-Jan

$20,986-Feb

$31,120-Mar

$31,307-April

$26,046-May

$20,837-June

Direct materials

$41,678-July

$32,772-August

$29,923-Sept

$27,608-Oct

$23,867-Nov

$22,528-Dec

Direct labour:

$40,855-July

$32,126-August

$29,332-Sept

$27,062-Oct

$23,395-Nov

$22,083-Dec

Manufacturing overhead:

$17,169-July

$13,500-August

$12,326-Sept

$11,372-Oct

$ 9,832-Nov

$ 9,280-Dec

The cost per unit of the open inventory in January is expected to be $705 per unit. You were also provided with the following to use for the selling and administrative budget. Prior-year monthly expense information and assumptions:

Shipping costs $45 per unit (no expected change)

Wages and salaries $20,000 expected to increase by 3% inflation only at the beginning of the year and then remain constant

Depreciation $8,200 expected to stay the same

Utilities $7,100 expected to increase by 3% in February and then remain constant

Insurance $4,100 expected to increase by 2% on renewal in April and then remain constant

Miscellaneous $2,900 expected to stay the same

Problem a) How do prepare the monthly cost of goods sold budget for 2020.

Problem b) How do prepare the monthly selling and administrative expenses budget for 2020.

Problem c) How do prepare the annual budgeted net income statement for 2020, ignoring income taxes based upon the information provided.