Fulton Company Has the Following Data Available If a Common Size Income Statement Were Prepared,what Percentage Would

question 75

Multiple Choice

Fulton Company has the following data available:
$\begin{array}{l}\text {Cost of Goods Sold, For the Year Ending December 31, 2013} & \$ 470 \\\text {Cost of Goods Sold, For the Year Ending December 31, 2012} & \$440 \\\text {Sales, For the Year Ending December 31, 2013} & \$ 900 \\\text {Sales, For the Year Ending December 31, 2012} & \$ 800 \\\text {Net Income, For the Year Ending December 31, 2013} & \$ 130 \\\text {Net Income, For the Year Ending December 31,2012} & \$ 110 \\\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2013 cost of goods sold of Fulton Company?

• A)52.2%
• B)19.4%
• C)28.3%
• D)2)2%
• E)100%

---

Definitions:

Conversion Costs

The combined costs of labor and overhead that are required to transform raw materials into finished products.

Cost Per Equivalent Unit

Calculation of the cost to produce a single unit, taking into account units that are partially completed; particularly useful in process costing systems.

Processing Department

A unit or stage within a manufacturing operation where a particular process or set of processes is performed, transforming raw materials into finished products.

Equivalent Units

A measure used in cost accounting to express the amount of work done during a period in terms of fully completed units of output.