Question

Exercise 9-13 (Part Level Submission) (Video) Fultz Company has accumulated the following budget data for the year 2020. 1. Sales: 31,380 units, unit selling price $90. 2. Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,370 pounds; ending, 15,270 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes. (a) Your answer is correct. Prepare a schedule showing the computation of cost of goods sold for 2020. FULTZ COMPANY Computation of Cost of Goods Sold For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020 Cost of one unit of finished goods:     Direct materials $     Direct labor     Manufacturing overhead           Total $ Cost of Goods Sold $ Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO VIDEO By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 1 of 3 used Earn Maximum Points available only if you answer this question correctly in two attempts or less. (b) Prepare a budgeted multiple-step income statement for 2020. FULTZ COMPANY Budgeted Income Statement For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020December 31, 2020 Total Operating ExpensesSelling and Administrative ExpensesPurchasesSalesBeginning InventoryCost of Goods SoldOperating ExpensesEnding InventoryIncome Tax ExpenseGross ProfitNet Income / (Loss)Income before Income TaxesIncome from Operations $ Ending InventorySalesPurchasesSelling and Administrative ExpensesTotal Operating ExpensesBeginning InventoryCost of Goods SoldGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income / (Loss)Operating Expenses Beginning InventoryCost of Goods SoldTotal Operating ExpensesGross ProfitSelling and Administrative ExpensesIncome Tax ExpenseIncome before Income TaxesPurchasesIncome from OperationsSalesNet Income / (Loss)Ending InventoryOperating Expenses Income before Income TaxesOperating ExpensesNet Income / (Loss)PurchasesSalesTotal Operating ExpensesSelling and Administrative ExpensesBeginning InventoryCost of Goods SoldIncome from OperationsEnding InventoryGross ProfitIncome Tax Expense Net Income / (Loss)Cost of Goods SoldSelling and Administrative ExpensesOperating ExpensesSalesTotal Operating ExpensesBeginning InventoryPurchasesEnding InventoryGross ProfitIncome before Income TaxesIncome from OperationsIncome Tax Expense Beginning InventoryIncome from OperationsInterest ExpensePurchasesTotal Operating ExpensesCost of Goods SoldEnding InventorySalesSelling and Administrative ExpensesGross ProfitIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss) Income before Income TaxesCost of Goods SoldIncome from OperationsIncome Tax ExpenseNet Income / (Loss)SalesSelling and Administrative ExpensesTotal Operating ExpensesOperating ExpensesPurchasesGross ProfitEnding InventoryBeginning Inventory Ending InventoryIncome from OperationsIncome Tax ExpenseGross ProfitNet Income / (Loss)Total Operating ExpensesOperating ExpensesBeginning InventoryPurchasesSalesSelling and Administrative ExpensesIncome before Income TaxesCost of Goods Sold Cost of Goods SoldEnding InventoryGross ProfitIncome before Income TaxesTotal Operating ExpensesOperating ExpensesBeginning InventoryIncome from OperationsIncome Tax ExpenseSelling and Administrative ExpensesNet Income / (Loss)PurchasesSales $

Answer 1

A B FULTZ COMPANY Computation of Cost of Goods Sold 2 For the Year Ending December 31, 2020 3 Cost of one unit of finished good: 4 $ 5 Direct materials 5 6 Direct labor 36 7 Manufacturing overhead 18 $ 8 Total 59 $1,851,420 10 Cost of goods sold 11 12 FULTZ COMAPNY Budgeted Income Statement 13 14 For the Year Ending December 31, 2020 $2,824,200 $1,851,420 15 Sales 16 Cost of goods sold 17 Gross profit 18 Selling and administrative expenses 19 Income from operations 20 Interest expense 972,780 $170,000 $ 802,780 $ 30,000 $ 772,780 $ 231,834 $ 540,946 21 Income before income taxes 22 Income tax expense 23 Net Income (Loss) 24 00 co.

A FULTZ COMPANY 1 Computation of Cost of Goods Sold For the Year Ending December 31, 2020 3 4 Cost of one unit of finished good: 5 Direct materials 6 Direct labor - 1*5 =3*12 7 Manufacturing overhead -6*3 -+B5+B6+B7 8 Total 9 =31380* B8 10 Cost of goods sold 11 12 FULTZ COMAPNY Budgeted Income Statement 13 14 For the Year Ending December 31, 2020 - 31380*90 15 Sales 16 Cost of goods sold 17 Gross profit 18 Selling and administrative expenses 170000 19 Income from operations +B10 =+B15-B16 +B17-B18 20 Interest expense 30000 +B19 -B20 21 Income before income taxes 22 Income tax expense =+B21*30% +B21 -B22 23 Net Income (Loss)