Dalby Company has accumulated the following budget data for the year 2014.

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

2 Cost of one unit of finished goods: direct materials 2 pounds at $5 per pound, direct labor 3 hours at $15 per hour, and manufacturing overhead $5 per direct labor hour.

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

4 Selling and administrative expenses: $200,000.

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

Instructions

(a) Prepare a schedule showing the computation of cost of goods sold for 2014.

(b) Prepare a budgeted income statement for 2014.

AppendixLO1