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Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs. Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits (losses) Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to inc ase by 5 percent, but prices are expected to fall by 10 percent. Mat ials costs per unit are expected to decreas by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent. Total manufacturing costs Marketing and administrative costs: Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by 10 percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis. Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Required: Prepare a budgeted income statement for year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Total marketing and administrative costs Total costs Operating loss 5,130,000 $ 302,000 256,000 590,000 1,800,000 $ $ 760,000 269,000 $ $ 916,000 134,000 $ 5,027,000 $ 103,000 0 0 0

Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs. Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits (losses) Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to inc ase by 5 percent, but prices are expected to fall by 10 percent. Mat ials costs per unit are expected to decreas by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent. Total manufacturing costs Marketing and administrative costs: Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by 10 percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis. Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Required: Prepare a budgeted income statement for year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Total marketing and administrative costs Total costs Operating loss 5,130,000 $ 302,000 256,000 590,000 1,800,000 $ $ 760,000 269,000 $ $ 916,000 134,000 $ 5,027,000 $ 103,000 0 0 0

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter5: Activity-based Costing And Management
Section: Chapter Questions
Problem 57P: Customers as a Cost Object Morrisom National Bank has requested an analysis of checking account...
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Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs. Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits (losses) Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to increase by 5 percent, but prices are expected to fall by 10 percent. Materials costs per unit are expected to decrease by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent. Total manufacturing costs Marketing and administrative costs: Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by 10 percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis. Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Required: Prepare a budgeted income statement for year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Total marketing and administrative costs Total costs Operating loss 5,130,000 $ 302,000 256,000 590,000 1,800,000 $ $ 760,000 269,000 916,000 134,000 $ $ 5,027,000 $ 103,000 $ 0 0 0
Transcribed Image Text:Coyle Manufacturing reports the following information for year 1: Sales revenue (60,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs. Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits (losses) Coyle Manufacturing Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs: Materials Variable cash costs Fixed cash costs Depreciation (fixed) All depreciation charges are fixed. Manufacturing depreciation is expected to increase by 10 percent in year 2. Marketing and administrative depreciation are expected to remain the same for year 2. Sales volume is expected to increase by 5 percent, but prices are expected to fall by 10 percent. Materials costs per unit are expected to decrease by 8 percent. Unit variable cash manufacturing costs are expected to increase by 15 percent. Fixed cash costs are expected to increase by 6 percent. Total manufacturing costs Marketing and administrative costs: Variable marketing costs will change with unit volume. Administrative cash costs are expected to decrease by 10 percent. Inventories are kept at zero. Coyle Manufacturing operates on a cash basis. Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Required: Prepare a budgeted income statement for year 2 for Coyle Manufacturing. Note: Do not round intermediate calculations. Total marketing and administrative costs Total costs Operating loss 5,130,000 $ 302,000 256,000 590,000 1,800,000 $ $ 760,000 269,000 916,000 134,000 $ $ 5,027,000 $ 103,000 $ 0 0 0
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