<\/p>
Blossom Company is preparing its budgeted income statement for 2020. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.<\/p>
<\/p>
Sales.<\/em>Sales for the year are expected to total1,000,000units. Quarterly sales are18%,23%,23%, and36%, respectively. The sales price is expected to be $40per unit for the first three quarters and $45per unit beginning in the fourth quarter. Sales in the first quarter of 2021 are expected to be10% higher than the budgeted sales for the first quarter of 2020.<\/p> <\/p> Production.<\/em>Management desires to maintain the ending finished goods inventories at18% of the next quarter's budgeted sales volume.<\/p> <\/p> Direct materials.<\/em>Each unit requires2pounds of raw materials at a cost of $9per pound. Management desires to maintain raw materials inventories at10% of the next quarter's production requirements. Assume the production requirements for first quarter of 2021 are490,000pounds.<\/p> <\/p> Blossom budgets0.2hours of direct labor per unit, labor costs at $11per hour, and manufacturing overhead at $17per direct labor hour. Its budgeted selling and administrative expenses for 2020 are $6,500,000.<\/p> <\/p> What is the cost of goods sold?<\/p>",
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"related_book": {
"title": "Accounting Principles",
"isbn": "1119491630, 978-1119491637, 978-0470534793",
"edition": "10th Edition",
"authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso",
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"free_related_book": {
"isbn": "1931332541",
"uri": "\/textbooks\/business-continuity-and-risk-management-essentials-of-organizational-resilience-1st-edition-9781931332545-9781931332736",
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"question_posted": "2024-06-29 02:42:02",
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