Zen Bach Company has accumulated the following budget data for the year 2020.

1. Sales: 60,000 units, unit selling price $50.

2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct labor 1.5 hours at $10 per hour, and manufacturing overhead $6 per direct labor hour.

3. Inventories (raw materials only): Beginning, 20,000 pounds; ending, 30,000 pounds.

4. Raw materials cost: $5 per pound.

5. Selling and administrative expenses: $320,000.

Instructions

For the Year of 2020, prepare (a) cost of goods sold budget and (b) budgeted income statement.