1. Walt Bach Company has accumulated the following budget data for the year 2022.

Sales: 40,000 units, unit selling price $50.

Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $12 per hour, and manufacturing overhead $6 per direct labor hour.

Inventories (raw materials only): Beginning, 10,000 pounds; desired ending, 15,000 pounds.

Raw materials cost: $5 per pound.

Selling and administrative expenses: $200,000.

Income taxes: 20% of income before income taxes.

Instructions

(a) Prepare a schedule showing the computation of budgeted cost of goods sold for 2022.

(b) Prepare a budgeted income statement for 2022.