Fultz Company has accumulated the following budget data for the year 2022.
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: 20% of income before income taxes.
Instructions
a. Prepare a schedule showing the computation of cost of goods sold for 2022.
b. Prepare a budgeted multiple-step income statement for 2022.
Prepare a cash budget for 2 months.
