Question 7 Walt Bach Company has accumulated the following budget data for the year 2019. 1. Sales: 40,000 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: $200,000. 6. Income taxes: 30% of income before income taxes. Prepare a schedule showing the computation of cost of goods sold for 2019. WALT BACH COMPANY Computation of Cost of Goods Sold For the Year Ending December 31, 2019

Question 7 Walt Bach Company has accumulated the following budget data for the year 2019. 1. Sales: 40,000 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: $200,000. 6. Income taxes: 30% of income before income taxes. Prepare a schedule showing the computation of cost of goods sold for 2019. WALT BACH COMPANY Computation of Cost of Goods Sold For the Year Ending December 31, 2019

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 15E: Cost of goods sold budget Delaware Chemical Company uses oil to produce two types of plastic...

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