communication partner
PERFORMANCE REPORT
Budgeted or Pro Forma Income Statement - prepare first the operating budgets and once you know the per unit costs for direct materials, direct labor, and manufacturing overhead you can calculate cost of goods sold. To calculate the overhead rate you multiply the predetermined overhead rate times the rate for each hour of both direct and indirect labor hour required for one unit.
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Budgeted Income Statement |
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DATA TABLE |
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Costs of goods sold per unit: |
$20,00 |
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Sales commissions (as a % of sales) |
5,00% |
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Advertising expense |
$170.000 |
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Amortization expense |
$50.000 |
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Administrative salaries |
$80.000 |
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Shipping expense (fixed) |
$40.000 |
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Budgeted sales for 2013 (units) |
21.000 |
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Selling price (per unit) |
$50 |
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Shipping expense (per unit) |
$7,50 |
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Comptex Inc. |
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Budgeted Income Statement |
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For the 1st Quarter , 2013 |
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Sales |
$1.050.000 |
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Less variable expenses: |
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Cost of goods sold |
$420.000 |
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Sales commissions |
52.500 |
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Shipping expense |
157.500 |
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Total variable expenses |
630.000 |
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Contribution margin |
420.000 |
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Less fixed expenses: |
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Advertising expense |
170.000 |
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Administrative salaries |
80.000 |
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Shipping expense |
40.000 |
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Amortization expense |
50.000 |
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Total fixed expenses |
340.000 |
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Net income |
$80.000 |
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