Sheridan Company has accumulated the following budget data for the year 2022. 1. 2. 3. 4. 5. Sales: 31,220 units, unit selling price $86. 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 $8 per direct labor hour. Inventories (raw materials only): beginning. 10.120 pounds; ending. 15.390 pounds. Selling and administrative expenses: $170.000; interest expense: $30,000. Income taxes: 20% of income before income taxes.
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.
![Prepare a schedule showing the computation of cost of goods sold for 2022.
SHERIDAN COMPANY
Computation of Cost of Goods Sold
Cost of one unit of finished goods:
Direct materials
Direct labor
Manufacturing overhead
Total
Cost of Goods Sold
S
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54cfb0f1-da3c-4713-b6c6-dd80a577d74b%2Fae5c2cee-4a33-4187-a455-f71bfbd26a60%2Fqi88yod_processed.jpeg&w=3840&q=75)
![Sheridan Company has accumulated the following budget data for the year 2022.
1.
2.
3.
4.
5.
Sales: 31,220 units, unit selling price $86.
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 $8 per direct labor hour.
Inventories (raw materials only): beginning, 10.120 pounds; ending. 15.390 pounds.
Selling and administrative expenses: $170.000; interest expense: $30,000.
Income taxes: 20% of income before income taxes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54cfb0f1-da3c-4713-b6c6-dd80a577d74b%2Fae5c2cee-4a33-4187-a455-f71bfbd26a60%2Fkwgmo25_processed.jpeg&w=3840&q=75)
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