I need assistance with part B Exercise 23-13 (Part Level Submission) Fultz Compa

Question

I need assistance with part B

Exercise 23-13 (Part Level Submission)

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

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

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

1. Sales: 31,230 units, unit selling price $ 88 . 2. 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 $ 8 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,400 pounds; ending, 15,210 pounds. 4.

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

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

5.

Your answer is correct. Prepare a schedule showing the computation of cost of goods sold for 2017 FULTZ COMPANY Computation of Cost of Goods Sold For the Year Ending December 31, 2017 Cost of one unit of finished goods: Direct materials Direct labor Manufacturing overhead 36 24 65 Total Cost of Goods Sold 2029950

Explanation / Answer

Budgeted income statement :

Sales (31230*88) 2748240 Cost of goods sold (31230*65) -2029950 Gross profit 718290 Selling and administrative expense -170000 Income from operation 548290 Interest expense -30000 Income before income taxes 518290 Income tax expense (518290*30%) -155487 Net income (loss) 362803

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