Question

Exercise 22-13 a-b (Video) Crane Company has accumulated the following budget data for the year 2020. 1. Sales: 31,190 units, unit selling price $90. 2. Cost of one unit of finished goods: direct materials 1 pound 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, 10,180 pounds; ending, 15,410 pounds. 4. Selling and administrative expenses: $170,000; interest expense: $30,000. 5. Income taxes: 30% of income before income taxes.

Prepare a schedule showing the computation of cost of goods sold for 2020. CRANE COMPANY Computation of Cost of Goods Sold For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020 Cost of one unit of finished goods:     Direct materials $     Direct labor     Manufacturing overhead           Total $ Cost of Goods Sold $

Prepare a budgeted multiple-step income statement for 2020. CRANE COMPANY Budgeted Income Statement December 31, 2020For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020 Cost of Goods SoldTotal Operating ExpensesIncome from OperationsIncome Tax ExpenseBeginning InventorySalesNet Income / (Loss)Ending InventoryGross ProfitIncome before Income TaxesOperating ExpensesPurchasesSelling and Administrative Expenses $ PurchasesOperating ExpensesBeginning InventoryNet Income / (Loss)SalesIncome Tax ExpenseSelling and Administrative ExpensesTotal Operating ExpensesEnding InventoryCost of Goods SoldIncome before Income TaxesGross ProfitIncome from Operations Ending InventoryGross ProfitOperating ExpensesNet Income / (Loss)Beginning InventoryTotal Operating ExpensesPurchasesSalesCost of Goods SoldIncome before Income TaxesSelling and Administrative ExpensesIncome from OperationsIncome Tax Expense Ending InventoryIncome before Income TaxesPurchasesBeginning InventoryNet Income / (Loss)Total Operating ExpensesGross ProfitCost of Goods SoldSalesIncome from OperationsSelling and Administrative ExpensesIncome Tax ExpenseOperating Expenses Beginning InventoryTotal Operating ExpensesNet Income / (Loss)Income from OperationsIncome Tax ExpenseOperating ExpensesSelling and Administrative ExpensesIncome before Income TaxesSalesCost of Goods SoldPurchasesEnding InventoryGross Profit Income Tax ExpenseIncome before Income TaxesInterest ExpenseTotal Operating ExpensesNet Income / (Loss)Cost of Goods SoldPurchasesEnding InventorySalesSelling and Administrative ExpensesBeginning InventoryGross ProfitIncome from Operations Income from OperationsTotal Operating ExpensesBeginning InventoryNet Income / (Loss)Income before Income TaxesIncome Tax ExpenseCost of Goods SoldGross ProfitOperating ExpensesPurchasesEnding InventorySalesSelling and Administrative Expenses PurchasesTotal Operating ExpensesIncome from OperationsSalesIncome before Income TaxesSelling and Administrative ExpensesOperating ExpensesBeginning InventoryCost of Goods SoldEnding InventoryIncome Tax ExpenseNet Income / (Loss)Gross Profit PurchasesIncome from OperationsSalesTotal Operating ExpensesGross ProfitNet Income / (Loss)Income Tax ExpenseBeginning InventoryCost of Goods SoldEnding InventoryIncome before Income TaxesOperating ExpensesSelling and Administrative Expenses $

Answer 1