Prepare a schedule showing the computation of cost of goods sold for 2017. Fultz
ID: 2475957 • Letter: P
Question
Prepare a schedule showing the computation of cost of goods sold for 2017.
Fultz Company has accumulated the following budget data for the year 2017.1. Sales: 31,190 units, unit selling price $90. 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 $6 per direct labor hour. 3. Inventories (raw materials only): beginning, 10,180 pounds; ending, 15,410 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes.
Explanation / Answer
COGS per unit direct materials 5 direct labor 36 overhead 18 total 59 COGS 1840210 Income Statement Sales 2807100 Less:COGS 1840210 Gross profit 966890 Less:selling expense 170000 EBIT 796890 Less:interest 30000 PBT 766890 Less:tax 230067 PAT 536823