Budgeted Income Statement. In the fiscal quarter ended December 31, 20X1, Eric Wills Lumber Company plans to sell 52,000 board feet lumber at a price of $125 per board foot. There are to be 5,500...

Budgeted Income Statement. In the fiscal quarter ended December 31, 20X1, Eric Wills Lumber Company plans to sell 52,000 board feet lumber at a price of $125 per board foot. There are to be 5,500 board feet on hand October 1, with a cost of $65 per board foot. The company plans to manufacture 53,000 board feet of lumber during the quarter, with the following manufacturing costs:

Direct materials:                               $971,500

Direct labor:                                       $2,000,000

Factory overhead:                           (25% of direct labor costs)

The company uses the last-in, first-out (LIFO) method of inventory costing. Selling expenses are estimated at 25 percent of sales, and administrative expenses are expected to be 10 percent more than the previous quarter’s $950,000.

Prepare a budgeted income statement.