Alloy Wheel Manufacturing has accumulated the following budget data for the year 2020:

1.Sales: 42,000 units, unit selling price $60.

2.Cost of one unit of finished goods: Direct materials 2 pounds at $5.25 per pound, direct labor 1.5 hours at $11.50 per hour, and manufacturing overhead $5.75 per direct labor hour.

3.Inventories (raw materials only): Beginning, 11,000 pounds; ending, 13,500 pounds.

4.Raw materials cost $5.25 per pound.

5.Selling and administrative expenses: $185,000.

6.Income taxes: 40% of income before income taxes.

Required:

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

(b) budgeted income statement for 2020.