Problem 21-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below: KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Assets Current Assets Cash Accounts receivable $7,500 73,500 26,620 Finished goods inventory (1,500 units) Total current assets 107,620 Property, Plant, and Equipment Equipment Less: Accumulated depreciation $40,130 10,620 29,510 Total assets $137,130 Liabilities and Stockholders' Equity Liabilities Notes payable $27,060 45,370 Accounts payable Total liabilities Stockholders' Equity Common stock 72,430 Retained earnings $38,750 25,950 Total stockholders' equity 64,700 Total liabilities and stockholders' equity $137,130 Budgeted data for the year 2017 include the following. 2017 Quarter 4 Total $76,800 13,000 Sales budget (8,000 units at $32) Direct materials used Direct labor Manufacturing overhead applied Selling and administrative expenses 12,500 10,000 15,670 $256,000 62,500 50,900 48,790 75,000 To meet sales requirements and to have 2,500 units of finished goods on hand at December 31, 2017, the production budget shows 9,000 required units of output. The total unit cost of production is expected to be $18. Krause uses the first-in, first-out (FIFO) inventory costing method. Interest expense is expected to be $3,500 for the year. Income taxes are expected to be 40% of income before income taxes. In 2017, the company expects to declare and pay an $10,700 cash dividend. The company's cash budget shows an expected cash balance of $5,880 at December 31, 2017. All sales and purchases are on account. It is expected that 60% of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used. In 2017, the company expects to purchase additional equipment costing $9,860 $6.996 of depreciation expense on equipment is included in the budget data and split equally between manufacturing overhead and selling and administrative expenses. Krause expects to pay $9,780 on the outstanding notes payable balance plus all interest due and payable to December (included in interest expense $3,500, above). Accounts payable at December 31, 2017, includes amounts due suppliers (see above) plus other accounts payable of $8,870. Unpaid income taxes at December 31 will be $7.110. (a) Prepare a budgeted statement of cost of goods sold. KRAUSE INDUSTRIES Budgeted Cost of Goods Sold $ Open Show Work Click if you would like to show Work for this question: SAVE FOR LATER SUBHIT ANSWER Attempts: 0 of 3 used LINK TO TEXT LINK TO TEXT ENG 11:30 PM E A INTL 2/2001