Concord Company is preparing its budgeted income statement for 2025. Relevant data pertaining to its sales, production, and direct
materials budgets are as follows.
Sales. Sales for the year are expected to total 860,000 units. Quarterly sales are 18%, 27%, 24%, and 31%, respectively. The unit
selling price is expected to be $38 for the first three quarters and $47 beginning in the fourth quarter. Sales in the first quarter of
2026 are expected to be 15% higher than the budgeted sales for the first quarter of 2025.
Production. Management desires to maintain the ending finished goods inventories at 25% of the next quarter's budgeted sales
volume.
Direct materials. Each unit requires 2 pounds of raw materials at a cost of $12 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
2026 are 387,000 pounds.
In addition, Concord budgets 0.3 hours of direct labor per unit, labor costs at $15 per hour, and manufacturing overhead at $20 per
direct labor hour. Its budgeted selling and administrative expenses for 2025 are $5,160,000.
(a)
? Your answer is correct.
Calculate the budgeted total unit cost. (Round answer to two decimal places (e.g., 12.25).)
Total unit cost
$
34.50
(b)
Prepare the budgeted multiple-step income statement for 2025. (Ignore income taxes.)
CONCORD COMPANY
Budgeted Income Statement
$
