Chapter 9, Problem 9.13E

Fultz Company has accumulated the following budget data for the year 2017.

1. Sales: 30,000 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 $15 per hour, and manufacturing overhead $5 per direct labor hour.

3. Inventories (raw materials only): beginning, 10,000 pounds; ending, 15,000 pounds.

4. Selling and administrative expenses: $170,000; interest expense: $30,000.

5. Income taxes: 30% of income before income taxes.

Instructions

(a) Prepare a schedule showing the computation of cost of goods sold for 2017.

(b) Prepare a budgeted multiple-step income statement for 2017.