Question

Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $17 Direct labor 12 Factory overhead $630,400 9 Selling expenses: Sales salaries and commissions 131,000 4 Advertising 44,300 Travel 9,800 Miscellaneous selling expense 10,800 3 Administrative expenses: Office and officers' salaries 128,000 Supplies 15,800 1 Miscellaneous administrative expense 14,860 2 Total $984,960 $48 It is expected that 10,640 units will be sold at a price of $192 a unit. Maximum sales within the relevant range are 13,000 units. Required: 1. Prepare an estimated income statement for 20Y7. Belmain Co.

Answer 1

income statement for 20Y7. Belmain Co
Sales		2042880
Cost of goods sold
Direct material	180880
Direct Labor	127680
Factory Overhead	726160
Cost of goods sold		1034720
Gross profit		1008160
Sales salaries and commissions	173560
Advertising	44300
Travel	9800
Misc. Selling Expense	42720
Total selling expenses	270380
Administrative expenses:
Office and officers' salaries	1,28,000
Supplies	26440
Miscellaneous administrative expense	36140
Total administrative expenses	1,90,580
Total expenses		4,60,960
Income from operations		5,47,200