BACK- CALCULATOR STANDARD VIEW PRINTER VERSION NE xercise 9-13 ultz Company has

Question

BACK- CALCULATOR STANDARD VIEW PRINTER VERSION NE xercise 9-13 ultz Company has accumulated the following budget data for the year 2017. ? Sales: 31,480 units, unit selling price $89. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per 2. hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,270 pounds; ending, 15,380 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes. 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 LINK TO TEXT VIDEO: APPuED SKILLS VIDEO: S?M?LAR EXERC?SE Prepare a budgeted multiple-step income stateient for 2017. FULTZ COMPANY Budgeted Income Statement

Explanation / Answer

CACLULATION OF MATERIAL COST FOR SOLD GOODS Sales = 31480 units Direct Material Required per unit = 5 pounds Per units Total Material Required = 157400 Pounds Add: Opening Stock 10270 Pounds Less: Closing Stock 15380 Pounds Material Used in production 152290 Rate per pounds = $                          5 total cost of material $           7,61,450 Statement of Cost of Goods Sold Amount Current manufacturing costs Per unit Direct Matrials ( 1 Pound X $ 5) $                          5 Driect Labour (3 Hrs X $ 12 Per hours) $                       36 Manufacturing Overhead (3 Hrs X $ 6 Per hrs) $                       18 Total $                       59 Material Cost (as per above) $           7,61,450 Labour Cost (31480 X $ 36) $         11,33,280 Manufacturing Overhead (31,480 X $ 18) $           5,66,640 Cost of Goods Sold $                  24,61,370 BUDGETED INCOME STATEMENT Units Unit Price Total Revenue 31480 $                                89 $          28,01,720 Less: Cost of goods Sold $          24,61,370 Gross Revenue $             3,40,350 Operating Expenses Selling and administrative Expenses $             1,70,000 Interest Expenses $                30,000 Net income $             1,40,350 Less: Taxation @ 30% $                42,105 Net income after tax $                98,245

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