How would I create a budget and a budgeted income statement based on the followi
ID: 2461840 • Letter: H
Question
How would I create a budget and a budgeted income statement based on the following?
What to Do:
You are in charge of putting together a budget for The Wooden Trunk, a business that is going to manufacture and sell necklaces for the benefit of the The Little Lighthouse, Tulsa, OK. This includes compiling a budgeted income statement. Be creative, but keep your budgets on ONE page.
Budgeted Income statement – put this together after all pieces of your budget are completed.
Your budget must include:
One sales number, which is made up of how much YOU think each necklace should be sold for ($40) and how many necklaces you think the company can sell in two weeks (30).
COGS budget. I will give that to you. COGS per necklace is $10.00. You do not need to create an inventory roll forward. Just use $10.00 per necklace sold.
Wage budget. The employee making the necklaces charges $20.00 per necklace.
Other costs. Just call this “overhead” instead of breaking out all the expenses. Overhead is a flat amount of $100.00. Not per necklace. Just $100 for the two-week span of time.
Explanation / Answer
Wooden trunk Budgeted Income Statement Unit Statement Necklace to be sold in the year [ =30 per 2 weeks*26=] 780 nos Budget Details Calculation Amt $ Sales revenue @$40 per pc =40*780 31,200 Less Cost Of Necklaces Materials @ $10 per pc =10*780= 7,800 Wages @$20 per pc =20*780= 15,600 Overheads @$100 per 2weeks =26*100= 2,600 Total Cost of Necklaces 26,000 Net Operating Income 5,200
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.