Fultz Company has accumulated the following budget data for the year 2020.

1.		Sales: 31,170 units, unit selling price $88.
2.		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 $6 per direct labor hour.
3.		Inventories (raw materials only): beginning, 10,130 pounds; ending, 15,250 pounds.
4.		Selling and administrative expenses: $170,000; interest expense: $30,000.
5.		Income taxes: 30% of income before income taxes.

(a)

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

FULTZ COMPANY Computation of Cost of Goods Sold December 31, 2020For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020
Cost of one unit of finished goods:
Direct materials		$
Direct labor
Manufacturing overhead
Total		$
Cost of Goods Sold		$

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(b)

Prepare a budgeted multiple-step income statement for 2020.

FULTZ COMPANY Budgeted Income Statement December 31, 2020For the Year Ending December 31, 2020For the Quarter Ending December 31, 2020
Beginning InventoryIncome from OperationsCost of Goods SoldEnding InventoryNet Income / (Loss)SalesIncome before Income TaxesGross ProfitTotal Operating ExpensesSelling and Administrative ExpensesOperating ExpensesPurchasesIncome Tax Expense		$
Income Tax ExpensePurchasesBeginning InventoryCost of Goods SoldIncome before Income TaxesGross ProfitOperating ExpensesSelling and Administrative ExpensesNet Income / (Loss)Income from OperationsEnding InventoryTotal Operating ExpensesSales
Total Operating ExpensesNet Income / (Loss)Beginning InventoryIncome Tax ExpenseOperating ExpensesEnding InventoryPurchasesSalesSelling and Administrative ExpensesCost of Goods SoldIncome before Income TaxesIncome from OperationsGross Profit
Income before Income TaxesEnding InventoryPurchasesIncome Tax ExpenseGross ProfitSelling and Administrative ExpensesOperating ExpensesTotal Operating ExpensesBeginning InventorySalesIncome from OperationsCost of Goods SoldNet Income / (Loss)
SalesPurchasesCost of Goods SoldIncome Tax ExpenseTotal Operating ExpensesNet Income / (Loss)Selling and Administrative ExpensesBeginning InventoryOperating ExpensesIncome before Income TaxesGross ProfitIncome from OperationsEnding Inventory
Ending InventorySelling and Administrative ExpensesIncome before Income TaxesBeginning InventoryNet Income / (Loss)SalesPurchasesCost of Goods SoldIncome Tax ExpenseGross ProfitTotal Operating ExpensesInterest ExpenseIncome from Operations
Gross ProfitIncome Tax ExpenseEnding InventoryIncome from OperationsSalesPurchasesBeginning InventoryNet Income / (Loss)Total Operating ExpensesSelling and Administrative ExpensesIncome before Income TaxesCost of Goods SoldOperating Expenses
Selling and Administrative ExpensesOperating ExpensesPurchasesCost of Goods SoldEnding InventorySalesNet Income / (Loss)Income before Income TaxesIncome Tax ExpenseIncome from OperationsBeginning InventoryTotal Operating ExpensesGross Profit
Ending InventoryPurchasesIncome before Income TaxesIncome from OperationsOperating ExpensesNet Income / (Loss)Beginning InventoryGross ProfitIncome Tax ExpenseSalesTotal Operating ExpensesCost of Goods SoldSelling and Administrative Expenses		$