Yono Company has accumulated the following budget data for the year 2011.
1. Sales: 30,000 units, unit selling price $80.
2. Cost of one unit of finished goods: Direct materials 2 pounds at $5 per pound, direct
labor 3 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.
Instructions:
(a) Prepare a schedule showing the computation of cost of goods sold for 2011.
(b) Prepare a budgeted income statement for 2011.