Water Filter Systems, Inc. has accumulated the following budget data for the year 2022.

1. Sales: 24,500 units, unit selling price $99.

2. Cost of one unit of finished goods: Direct materials 1.5 pounds at $4 per pound, direct labor 2.0 hours at $19 per hour, and manufacturing overhead $3 per direct labor hour.

3. Inventories (raw materials only) Beginning: 7,200lbs., Ending 8,100lbs.

4. Raw materials cost: $6 per pound.

5. Selling and administrative expenses: $44,700.

6. Income taxes: 25% of income before income taxes.

Instructions

(a) Prepare a schedule showing the computation of cost of goods sold for 2022.

(b) Prepare a budgeted income statement for 2022.