Question

Exercise 9-13 (Part Level Submission) (Video) Fultz Company has accumulated the following budget data for the year 2020. 1. Sales: 31,160 units, unit selling price $88. 2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,280 pounds; ending, 15,490 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes.

(a) (b) Prepare a budgeted multiple-step income statement for 2020. FULTZ COMPANY Budgeted Income Statement For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020 Operating ExpensesNet Income / (Loss)Ending InventoryIncome from OperationsIncome Tax ExpensePurchasesSalesTotal Operating ExpensesSelling and Administrative ExpensesCost of Goods SoldGross ProfitIncome before Income TaxesBeginning Inventory $ Total Operating ExpensesNet Income / (Loss)Ending InventorySalesBeginning InventoryOperating ExpensesCost of Goods SoldIncome Tax ExpenseIncome from OperationsGross ProfitIncome before Income TaxesPurchasesSelling and Administrative Expenses Income from OperationsGross ProfitIncome before Income TaxesNet Income / (Loss)Beginning InventorySelling and Administrative ExpensesCost of Goods SoldEnding InventoryIncome Tax ExpenseOperating ExpensesPurchasesTotal Operating ExpensesSales Total Operating ExpensesIncome before Income TaxesIncome from OperationsGross ProfitBeginning InventoryIncome Tax ExpenseCost of Goods SoldNet Income / (Loss)Operating ExpensesEnding InventoryPurchasesSalesSelling and Administrative Expenses Total Operating ExpensesIncome before Income TaxesPurchasesBeginning InventorySalesSelling and Administrative ExpensesCost of Goods SoldEnding InventoryGross ProfitIncome from OperationsIncome Tax ExpenseNet Income / (Loss)Operating Expenses PurchasesIncome before Income TaxesCost of Goods SoldEnding InventoryGross ProfitIncome from OperationsSelling and Administrative ExpensesSalesIncome Tax ExpenseNet Income / (Loss)Beginning InventoryInterest ExpenseTotal Operating Expenses Income from OperationsIncome Tax ExpenseTotal Operating ExpensesSelling and Administrative ExpensesGross ProfitBeginning InventoryNet Income / (Loss)Cost of Goods SoldEnding InventoryOperating ExpensesIncome before Income TaxesPurchasesSales Net Income / (Loss)Gross ProfitTotal Operating ExpensesIncome Tax ExpenseOperating ExpensesPurchasesCost of Goods SoldSalesIncome before Income TaxesSelling and Administrative ExpensesBeginning InventoryEnding InventoryIncome from Operations Income from OperationsGross ProfitNet Income / (Loss)Beginning InventoryCost of Goods SoldEnding InventoryIncome Tax ExpenseIncome before Income TaxesPurchasesOperating ExpensesSalesSelling and Administrative ExpensesTotal Operating Expenses $

Answer 1

FULTZ COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2020
Sales	2742080	=31160*88
Cost of Goods Sold	1963080	=31160*63
Gross Profit	779000
Selling and Administrative Expenses	170000
Income from Operations	609000
Interest Expense	30000
Income before Income Taxes	579000
Income Tax Expense	173700
Net Income / (Loss)	405300
Workings:
Direct materials per unit	6	=1*6
Direct labor per unit	39	=3*13
Overhead per unit	18	=3*6
Cost of Goods Sold per unit	63