Walt Bach Company has accumulated the following budget data
Walt Bach Company has accumulated the following budget data for the year 2012.
1.Sales: 30,000 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 $12 per hour, and manufacturing overhead $6 per direct labor hour.
3.Inventories (raw materials only): Beginning, 10,000 pounds; ending, 15,000 pounds.
4.Raw materials cost: $5 per pound.
5.Selling and administrative expenses: $160,000.
6.Income taxes: 30% of income before income taxes.
(a)Prepare a schedule showing the computation of cost of goods sold for 2012.
(b)Prepare a budgeted income statement for 2012.