Dalby Company has accumulated the following budget data for the year 2014.
1. Sales: 31,280 units, unit selling price $90.
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, 10,150 pounds; ending, 15,450 pounds.
4. Selling and administrative expenses: $201,370.
5. Income taxes: 30% of income before income taxes.
(a) Prepare a schedule showing the computation of cost of goods sold for 2014.
(b) Prepare a budgeted income statement for 2014.