Water Filter Systems, Inc. has accumulated the following budget data for the year 2020.1. Sales: 37,000 units, unit selling price $65.2. Cost of one unit of finished goods: Direct materials 1.5 pounds at $4 per pound, direct labor 2.5 hours at $14 per hour, and manufacturing overhead $3 per direct labor hour.3. Inventories (raw materials only) Beginning, 7,200lbs. ending 10,400lbs. 4. Raw materials cost: $4 per pound.5. Selling and administrative expenses: $106,350.6. Income taxes: 40% of income before income taxes.Instructions(a) Prepare a schedule showing the computation of cost of goods sold for 2020.(b) Prepare a budgeted income statement for 2020.