QUESTION: FULTZ COMPANY HAS ACCUMULATED THE FOLLOWING BUDGET DATA FOR THE YEAR 2017. 1. SALES: 31,450 UNITS, UNIT SELLING PRICE $85. 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 $6 PER DIRECT LABOR HOUR. 3. INVENTORIES (RAW MATERIALS ONLY): BEGINNING, 10,290 POUNDS; ENDING, 15,250 POUNDS. 4. SELLING AND ADMINISTRATIVE EXPENSES: $170,000; INTEREST EXPENSE: $30,000. 5. INCOME TAXES: 30% OF INCOME BEFORE INCOME TAXES. PREPARE A SCHEDULE SHOWING THE COMPUTATION OF COST OF GOODS SOLD FOR 2017. FULTZ COMPANY COMPUTATION OF COST OF GOODS SOLD 2017 COST OF ONE UNIT OF FINISHED GOODS: DIRECT MATERIALS DIRECT LABOR MANUFACTURING OVERHEAD TOTAL COST OF GOODS SOLD $ SS $ $
QUESTION: FULTZ COMPANY HAS ACCUMULATED THE FOLLOWING BUDGET DATA FOR THE YEAR 2017. 1. SALES: 31,450 UNITS, UNIT SELLING PRICE $85. 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 $6 PER DIRECT LABOR HOUR. 3. INVENTORIES (RAW MATERIALS ONLY): BEGINNING, 10,290 POUNDS; ENDING, 15,250 POUNDS. 4. SELLING AND ADMINISTRATIVE EXPENSES: $170,000; INTEREST EXPENSE: $30,000. 5. INCOME TAXES: 30% OF INCOME BEFORE INCOME TAXES. PREPARE A SCHEDULE SHOWING THE COMPUTATION OF COST OF GOODS SOLD FOR 2017. FULTZ COMPANY COMPUTATION OF COST OF GOODS SOLD 2017 COST OF ONE UNIT OF FINISHED GOODS: DIRECT MATERIALS DIRECT LABOR MANUFACTURING OVERHEAD TOTAL COST OF GOODS SOLD $ SS $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:QUESTION:
FULTZ COMPANY HAS ACCUMULATED THE FOLLOWING BUDGET
DATA FOR THE YEAR 2017.
1. SALES: 31,450 UNITS, UNIT SELLING PRICE $85.
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 $6 PER DIRECT LABOR
HOUR.
3. INVENTORIES (RAW MATERIALS ONLY): BEGINNING, 10,290
POUNDS; ENDING, 15,250 POUNDS.
4. SELLING AND ADMINISTRATIVE EXPENSES: $170,000; INTEREST
EXPENSE: $30,000.
5. INCOME TAXES: 30% OF INCOME BEFORE INCOME TAXES.
PREPARE A SCHEDULE SHOWING THE COMPUTATION OF COST OF
GOODS SOLD FOR 2017.
FULTZ COMPANY COMPUTATION OF COST OF GOODS SOLD 2017
COST OF ONE UNIT OF FINISHED GOODS:
DIRECT MATERIALS
DIRECT LABOR
MANUFACTURING OVERHEAD
TOTAL
COST OF GOODS SOLD
$
SS
$
$
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