Exercise 9-13 Fultz Company has accumulated the following budget data for the ye

Question

Exercise 9-13 Fultz Company has accumulated the following budget data for the year 2017 Sales: 31,120 units, unit selling price $88. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $8 per direct labor hour. Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,240 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000 Income taxes: 30% of income before income taxes 1. 2. 4. 5. Prepare a schedule showing the computation of cost of goods sold for 2017 FULTZ COMPANY Computation of Cost of Goods Sold Cost of one unit of finished goods: Direct materials Direct labor Manufacturing overhead Total Cost of Goods Sold

Explanation / Answer

Solution:

Fultz Company Computation of cost of goods sold Particulars Amount Cost of one unit of finished goods: Direct material $6.00 Direct labor $36.00 Manufacturing overhead $24.00 Total $66.00 Nos of units sold 31120 Cost of goods sold $2,053,920.00

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