Exercise 21-13 LINK TO TEXT Open Show Work Exercise 21-13 Fultz Company has accu

ID: 2549609 • Letter: E

Question

Exercise 21-13

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Exercise 21-13

Fultz Company has accumulated the following budget data for the year 2017.
1. Sales: 31,490 units, unit selling price $87. 2. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $8 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,480 pounds; ending, 15,420 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes.

Explanation / Answer

FULTZ Company

Computation of Cost of Goods sold

Cost of one unit of Finished Goods

Direct Materials

1 pound @ $5/pound

$ 5

Direct Labour

3 hours @ $ 13/hour

$ 39

=13*3

Manufacturing Overhead

$8 per direct labour hour i.e. 3 hours

$ 24

=3*8

Total

$ 68

Units Sold in the year

31490

Cost of goods Sold

$ 2,141,320

=31490*68