Kanban Company estimated sales of 40,000 units at $6 each.Budgeted cost of goods sold per unit includes $1.20 of direct materials,six minutes of direct labor time at $15 per hour,and unit overhead cost of $1.30.Kanban pays a sales commission of ten percent of sales revenue.Fixed selling and administrative expenses are budgeted at $25,000.Prepare a statement of operating income.

Question

Kanban Company estimated sales of 40,000 units at $6 each.Budgeted cost of goods sold per unit includes $1.20 of direct materials,six minutes of direct labor time at $15 per hour,and unit overhead cost of $1.30.Kanban pays a sales commission of ten percent of sales revenue.Fixed selling and administrative expenses are budgeted at $25,000.Prepare a statement of operating income.
Kanban Company estimated sales of 40,000 units at $6 each.Budgeted cost of goods sold per unit includes $1.20 of direct materials,six minutes of direct labor time at $15 per hour,and unit overhead cost of $1.30.Kanban pays a sales commission of ten percent of sales revenue.Fixed selling and administrative expenses are budgeted at $25,000.Prepare a statement of operating income.

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The Answer of Kanban Company estimated sales of 40,000 units at $6 each.Budgeted cost of goods sold per unit includes $1.20 of direct materials,six minutes of direct labor time at $15 per hour,and unit overhead cost of $1.30.Kanban pays a sales commission of ten percent of sales revenue.Fixed selling and administrative expenses are budgeted at $25,000.Prepare a statement of operating income.

Kanban Company Estimated Sales of 40,000 Units at $6 Each