Exercise 21-13 (Part Level Submission) Fultz Company has accumulated the followi

Question

Exercise 21-13 (Part Level Submission) Fultz Company has accumulated the following budget data for the year 2017. 1. Sales: 30,000 units, unit selling price s85. 2Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $15 per hour, and manufacturing overhead $5 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,000 pounds; ending, 15,000 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000 5. Income taxes: 30% of income before income taxes.

Explanation / Answer

Cost of goods sold:

Cost of one unit of finished good:

Direct material(1pound * $5) $5

Direct labor(3 hours * $15) $45

Manufacturing overhead(3hours * $5) $15

$65

FULTZ COMPANY

BUDGETED INCOME STATEMENT

Sales $2550000

Cost of goods sold ($1950000)

Gross profit $600000

Selling and administrative expenses ($170000)

Operating income $430000

Interest expense ($30000)

EBT $400000

Tax rate 30% ($120000)

Net income $280000.

  

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.