Fultz Company has accumulated the following budget data for the year 2020. 1. 2. 3. 4. 5. Sales: 31,160 units, unit selling price $88. 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 $7 per direct labor hour. Inventories (raw materials only): beginning, 10,190 pounds; ending, 15,240 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 30% of income before income taxes. Prepare a schedule showing the computation of cost of goods sold for 2020. FULTZ COMPANY Computation of Cost of Goods Sold Cost of one unit of finished goods: Direct labor For the Year Ending December 31, Direct materials Total Manufacturing overhead Cost of Goods Sold 2020 DONN
Fultz Company has accumulated the following budget data for the year 2020. 1. 2. 3. 4. 5. Sales: 31,160 units, unit selling price $88. 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 $7 per direct labor hour. Inventories (raw materials only): beginning, 10,190 pounds; ending, 15,240 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 30% of income before income taxes. Prepare a schedule showing the computation of cost of goods sold for 2020. FULTZ COMPANY Computation of Cost of Goods Sold Cost of one unit of finished goods: Direct labor For the Year Ending December 31, Direct materials Total Manufacturing overhead Cost of Goods Sold 2020 DONN
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Fultz Company has accumulated the following budget data for the year 2020.
1.
2.
3.
4.
5.
Sales: 31,160 units, unit selling price $88.
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 $7 per direct labor hour.
Inventories (raw materials only): beginning, 10,190 pounds; ending, 15,240 pounds.
Selling and administrative expenses: $170,000; interest expense: $30,000.
Income taxes: 30% of income before income taxes.
Prepare a schedule showing the computation of cost of goods sold for 2020.
Cost of one unit of finished goods:
FULTZ COMPANY
Computation of Cost of Goods Sold
For the Year Ending December 31, 2020
Direct materials
Direct labor
Manufacturing overhead
Total
Cost of Goods Sold
$
$
$
I
Transcribed Image Text:FULTZ COMPANY
Budgeted Income Statement
For the Year Ending December 31, 2020
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