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Before the year began, JenCo developed the following static budget for the estimated sales of 37,000 units. Sales are higher than expected and management needs to revise its budge For Year Ended May 31, 2019 Units sold Sales Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Net income Units sold Sales Prepare a flexible budget for 48,000 and 60,000 units of sales. Assume that the tax rate is 16% of the income. JenCo Cost of goods sold Direct material Direct labor 37,000 $1,295,000 111,000 333,000 111,000 43,000 $598,000 $697,000 111,000 44,000 542,000 86,720 $455,280 Variable manufacturing overhead Fixed manufacturing overhead Total cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes. Taxes Flexible Budget For Year Ended May 31, 2019 Per-unit cost 48,000 60,000

Before the year began, JenCo developed the following static budget for the estimated sales of 37,000 units. Sales are higher than expected and management needs to revise its budge For Year Ended May 31, 2019 Units sold Sales Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Net income Units sold Sales Prepare a flexible budget for 48,000 and 60,000 units of sales. Assume that the tax rate is 16% of the income. JenCo Cost of goods sold Direct material Direct labor 37,000 $1,295,000 111,000 333,000 111,000 43,000 $598,000 $697,000 111,000 44,000 542,000 86,720 $455,280 Variable manufacturing overhead Fixed manufacturing overhead Total cost of goods sold Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes. Taxes Flexible Budget For Year Ended May 31, 2019 Per-unit cost 48,000 60,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3PA: Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc.,...
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Before the year began, JenCo developed the following static budget for the estimated sales of 37,000 units. Sales are higher than expected and management needs to revise its budget. JenCo State Budget For Year Ended May 31, 2019 Units sold Sales Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead_ Total cost of goods sold Gross profit Variable sales and administration expenses, Fixed sales and administration expenses Income before taxes Taxes Net income Units sold Sales Cost of goods sold Direct material Direct labor 37,000 $1,295,000 Prepare a flexible budget for 48,000 and 60,000 units of sales Assume that the tax rate is 16% of the income. JenCo Variable manufacturing overhead Fixed manufacturing overhead 111,000 333,000 111,000 43,000 $598,000 $697,000 Total cost of goods sold_ Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Net income Flexible Budget For Year Ended May 31, 2019 111,000 44,000 542,000 86,720 $455,280 Per-unit cost 48,000 60,000
Transcribed Image Text:Before the year began, JenCo developed the following static budget for the estimated sales of 37,000 units. Sales are higher than expected and management needs to revise its budget. JenCo State Budget For Year Ended May 31, 2019 Units sold Sales Cost of goods sold Direct material Direct labor Variable manufacturing overhead Fixed manufacturing overhead_ Total cost of goods sold Gross profit Variable sales and administration expenses, Fixed sales and administration expenses Income before taxes Taxes Net income Units sold Sales Cost of goods sold Direct material Direct labor 37,000 $1,295,000 Prepare a flexible budget for 48,000 and 60,000 units of sales Assume that the tax rate is 16% of the income. JenCo Variable manufacturing overhead Fixed manufacturing overhead 111,000 333,000 111,000 43,000 $598,000 $697,000 Total cost of goods sold_ Gross profit Variable sales and administration expenses Fixed sales and administration expenses Income before taxes Taxes Net income Flexible Budget For Year Ended May 31, 2019 111,000 44,000 542,000 86,720 $455,280 Per-unit cost 48,000 60,000
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