Question

Exercise 21-13 Fultz Company has accumulated the following budget data for the year 2017. 1. 3. 4. 5. Sales: 31,380 units, unit selling price $90. 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. Inventories (raw materials only): beginning, 10,370 pounds; ending, 15,270 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 30% of income before income taxes.

Answer 1

Calculation of COGS and Multi step income statement.

Calculation of cost of goods sold Particulars Amount Cost of one unit Direct material Direct labour Manufacturing overhead Total cost 59 31380) Units sold Total cost Cost of goods sold 59 1851420 Multi-Step income statement Sales Cost of goods sold Gross profit Selling and administrative exp Operating profit Interest expenses Net Profit before tax Income tax Net Profit after tax 2824200 1851420 972780 170000 802780 30000 772780 231834 540946