Chegg . Get 24/7 Home . X tps//edugen Weygandt, Accounting Principles, 12e ACCOU

Question

Chegg . Get 24/7 Home . X tps//edugen Weygandt, Accounting Principles, 12e ACCOUNTING1-2 (ACE ORION Dewnleadable eTextbsok Exercise 23-13 (Part Level Submission) Fultz Company has accoumulated the following budget data for the year 2017 . Sales: 31,330 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 17 per direct labor hour. 3. Inventeries (raw materials only): beginning, 10,220 pounds; ending. 15,430 pounds 4. Seling and administrative expenses:$170,000: interest expese: $30,000, 5. Income taxes: 30% of income before income taxes. (a) Prepare a schedule shoing the computation of cost of goods sold for 2017 Cost of one unit of finished goods Direct materials Direct labor Manufacturing overhead Total 2

Explanation / Answer

Part-1)

Cost of one unit of finished goods:

Direct materials (1*$5)

$5

Direct labor (3*$12)

$36

Manufacturing overhead (3*$7)

$21

Total

$62

$62 * 31,330 units = 1,942,460

Part-2)

Sales (31,330 units * $88)

$2,757,040

COGS

$1,942,460

Gross profit

$814,580

Selling and administrative expenses

$170,000

Interest expense

$30,000

Income before income tax

$614,580

Income tax expense (614,580 * 30%)

$184,374

Net income

$430,206

Cost of one unit of finished goods:

Direct materials (1*$5)

$5

Direct labor (3*$12)

$36

Manufacturing overhead (3*$7)

$21

Total

$62

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