Sheffield Company has accumulated the following budget data for the year 2017.

1.		Sales: 31,410 units, unit selling price $89.
2.		Cost of one unit of finished goods: direct materials 1 pound at $5 per pound, direct labor 3 hours at $12 per hour, and manufacturing overhead $8 per direct labor hour.
3.		Inventories (raw materials only): beginning, 10,240 pounds; ending, 15,220 pounds.
4.		Selling and administrative expenses: $170,000; interest expense: $30,000.
5.		Income taxes: 30% of income before income taxes.

Prepare a schedule showing the computation of cost of goods sold for 2017.

SHEFFIELD COMPANY Computation of Cost of Goods Sold For the Quarter Ending December 31, 2017For the Year Ending December 31, 2017December 31, 2017
Cost of one unit of finished goods:
Direct materials		$
Direct labor
Manufacturing overhead
Total		$
Cost of Goods Sold		$

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Prepare a budgeted multiple-step income statement for 2017.

SHEFFIELD COMPANY Budgeted Income Statement For the Year Ending December 31, 2017For the Quarter Ending December 31, 2017December 31, 2017
Gross ProfitEnding InventorySalesIncome before Income TaxesIncome from OperationsIncome Tax ExpenseNet Income / (Loss)PurchasesOperating ExpensesBeginning InventoryCost of Goods SoldSelling and Administrative ExpensesTotal Operating Expenses		$
Operating ExpensesTotal Operating ExpensesPurchasesSalesNet Income / (Loss)Income from OperationsSelling and Administrative ExpensesEnding InventoryBeginning InventoryCost of Goods SoldIncome Tax ExpenseGross ProfitIncome before Income Taxes
Gross ProfitIncome Tax ExpenseNet Income / (Loss)Selling and Administrative ExpensesTotal Operating ExpensesBeginning InventoryOperating ExpensesEnding InventoryPurchasesSalesCost of Goods SoldIncome before Income TaxesIncome from Operations
Net Income / (Loss)PurchasesIncome from OperationsIncome Tax ExpenseSelling and Administrative ExpensesTotal Operating ExpensesOperating ExpensesSalesGross ProfitBeginning InventoryCost of Goods SoldEnding InventoryIncome before Income Taxes
Cost of Goods SoldNet Income / (Loss)Ending InventoryBeginning InventoryIncome Tax ExpenseGross ProfitIncome before Income TaxesOperating ExpensesPurchasesIncome from OperationsSalesSelling and Administrative ExpensesTotal Operating Expenses
Income from OperationsSelling and Administrative ExpensesCost of Goods SoldEnding InventoryTotal Operating ExpensesBeginning InventoryIncome before Income TaxesGross ProfitIncome Tax ExpenseInterest ExpenseNet Income / (Loss)PurchasesSales
Selling and Administrative ExpensesNet Income / (Loss)Ending InventoryGross ProfitCost of Goods SoldIncome before Income TaxesSalesIncome from OperationsTotal Operating ExpensesBeginning InventoryIncome Tax ExpenseOperating ExpensesPurchases
Beginning InventoryGross ProfitSalesEnding InventoryIncome before Income TaxesCost of Goods SoldIncome from OperationsIncome Tax ExpenseNet Income / (Loss)Total Operating ExpensesOperating ExpensesPurchasesSelling and Administrative Expenses
Operating ExpensesIncome from OperationsSalesGross ProfitSelling and Administrative ExpensesIncome before Income TaxesTotal Operating ExpensesPurchasesEnding InventoryIncome Tax ExpenseNet Income / (Loss)Beginning InventoryCost of Goods Sold		$