Prepare the budgeted multiple-step income statement

Assignment Help Accounting Basics
Reference no: EM131821356

Pargo Company is preparing its budgeted income statement for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total 1,500,000 units. Quarterly sales are 22%, 25%, 23%, and 30%, respectively. The sales price is expected to be $40 per unit for the first three quarters and $45 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 13% higher than the budgeted sales for the first quarter of 2017.

Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume.

Direct materials. Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2018 are 509,000 pounds.

Pargo budgets 0.2 hours of direct labor per unit, labor costs at $12 per hour, and manufacturing overhead at $17 per direct labor hour. Its budgeted selling and administrative expenses for 2017 are $6,956,000.

Calculate the budgeted total unit cost. (Round answer to 2 decimal places, e.g. 12.25.)

Prepare the budgeted multiple-step income statement for 2017. (Ignore income taxes.)

 

Reference no: EM131821356

Questions Cloud

Management desires to maintain the ending finished goods : Management desires to maintain the ending finished goods inventories at 20% of the next quarter's budgeted sales volume
What the client-server model is for computer networks : Explain what the client-server model is for computer networks. How does this client-service model benefit the user of the client systems?
Stature and status-height-ability : Do taller adults make more money? The authors of the paper "Stature and Status: Height, Ability, and Labor Market Outcomes" (Journal of Political Economics
Explain some of the issues relating to human factors : Explain the steps that can be taken to mitigate the hazards other than what was discussed in the video relating to the accident.
Prepare the budgeted multiple-step income statement : Prepare the budgeted multiple-step income statement for 2017, Calculate the budgeted total unit cost
Pleasant touch sensations measured : Estimate the mean change in pleasantness rating associated with an increase of 1 impulse per second in firing frequency using a 95% confidence interval
What type of entity is best for the goals and vision : Analyze what a business owner must consider when deciding what type of entity is best for the goals and vision of the business.
Explain brand personality and give examples : 1. Explain brand personality and give examples. 2. Explain how marketers use psychographic data. 3. Explain VALS2 and how marketers use it.
Discuss maintain the desired minimum monthly balance : How much cash, if any, must be borrowed to maintain the desired minimum monthly balance

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd