Brisbane Sports has accumulated the following budget data for the year 2020.

1. Sales: 30,000 units, unit selling price £85.

2. Cost of one unit of finished goods: direct materials 1 kilogram at £5 per kilogram, direct labor 3 hours at £15 per hour, and manufacturing overhead £5 per direct labor hour.

3. Inventories (raw materials only): beginning, 10,000 kilograms; ending, 15,000 kilograms.

4. Selling and administrative expenses: £170,000; interest expense: £30,000.

5. Income taxes: 30% of income before income taxes.

Instructions

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

b. Prepare a budgeted multiple-step income statement for 2020.