Exercise 913 Fultz Company has accumulated the following bud

Exercise 9-13 Fultz Company has accumulated the following budget data for the year 2017 Sales: 31,120 units, unit selling price $88. 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 $8 per direct labor hour. Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,240 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000 Income taxes: 30% of income before income taxes 1. 2. 4. 5. Prepare a schedule showing the computation of cost of goods sold for 2017 FULTZ COMPANY Computation of Cost of Goods Sold Cost of one unit of finished goods: Direct materials Direct labor Manufacturing overhead Total Cost of Goods Sold

Solution

Solution:

Fultz Company
Computation of cost of goods sold
Particulars	Amount
Cost of one unit of finished goods:
Direct material	$6.00
Direct labor	$36.00
Manufacturing overhead	$24.00
Total	$66.00
Nos of units sold	31120
Cost of goods sold	$2,053,920.00