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Martinez Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

		Product JB 50		Product JB 60
Sales budget:
Anticipated volume in units		403,200		203,300
Unit selling price		$23		$28
Production budget:
Desired ending finished goods units		28,000		17,000
Beginning finished goods units		33,500		12,100
Direct materials budget:
Direct materials per unit (pounds)		1		2
Desired ending direct materials pounds		33,100		16,400
Beginning direct materials pounds		44,900		14,900
Cost per pound		$3		$4
Direct labor budget:
Direct labor time per unit		0.3		0.6
Direct labor rate per hour		$11		$11
Budgeted income statement:
Total unit cost		$14		$22

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665,000 for product JB 50 and $362,000 for product JB 60, and administrative expenses of $545,000 for product JB 50 and $344,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Your answer is partially correct. Try again. Prepare the budgeted multiple-step income statement for the year. (Note: income taxes are not allocated to the products). MARTINEZ INC. Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales $ 9273600 $ 5692400 $ 14966000 Cost of Goods Sold Gross Profit Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses $ $ Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsInterest ExpenseIncome Tax ExpenseNet Income / (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses Administrative ExpensesBeginning InventoryCost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseInterest ExpenseNet Income / (Loss)Operating ExpensesPurchasesSalesSelling ExpensesTotal Operating Expenses $

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