Exercise 21-13 (Part Level Submission) Fultz Company has accumulated the followi

Question

Exercise 21-13 (Part Level Submission) Fultz Company has accumulated the following budget data for the year 2017 1. Sales: 31,320 units, unit selling price $85. 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 $7 per direct labor hour. Inventories (raw materials only): beginning, 10,300 pounds; ending, 15,190 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 of Cost of Goods Sold 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

Explanation / Answer

a) Prepare a schedule showing cost of goods sold :

2) Merchandise purchase budget :

Cost of one unit of finished goods Direct material (5*1) 5 Direct labour (3*12) 36 Manufacturing overhead (3*7) 21 Total 62 Cost of goods sold (62*31320) 1941840

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