contestada

Fultz Company has accumulated the following budget data for the year 2020.

1. Sales: 31,410 units, unit selling price $85.
2. Cost of one unit of finished goods: direct materials 1 pound at $6 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $7 per direct labor hour.
3. Inventories (raw materials only): beginning, 10,120 pounds; ending, 15,480 pounds.
4. Selling and administrative expenses: $170,000; interest expense: $30,000.
5. Income taxes: 30% of income before income taxes.

Prepare a schedule showing the computation of cost of goods sold for 2020.

Respuesta :

akiran007

Answer:

COST OF Goods SOLD $ 1,1539,110

Explanation:

Fultz Company

Schedule  of Cost of Goods Sold for 2020

As there are no beginning and ending finished goods inventories the total units produced are sold. (Finished Goods   required       31410  Units)

Inventories raw materials : beginning, 10,120 pounds

Add Direct Materials Purchases 36770 pounds

Less Inventories ending raw materials , 15,480 pounds

Direct Materials Used 31410 pounds

Materials 1 pound at $6 per pound= $ 6*  31410  Units=  $ 188460

Direct labor 3 hours at $12 per hour= $ 36*  31410  Units= $ 1130780

Manufacturing Overhead $7 per direct labor hour= $ 7*  31410  Units=

                                                                                             $ 219870

Total Manufacturing Costs  $ 1,1539,110

There are no beginning and ending work in process inventories so the total manufacturing cost gives us the COST OF Goods SOLD.

Otras preguntas