Butler

Butler Company expects to sell 1 comma 650

1,650 units in January

January and 1 comma 550

1,550 units in February

February. The company expects to incur the following productcosts:

Direct Materials cost per unit $85

Direct Labor cost per unit $60

Manufacturing overhead cost per unit $55

The beginning balance in Finished Goods Inventory is 250

250 units at $ 200

$200 each for a total of $ 50 comma 000

$50,000. Butler

Butler uses FIFO inventory costing method. Prepare the cost of goods sold budget for Butler

Butler for January

January and February

February. (Abbreviations used: VOH= variable manufacturingoverhead; FOH= fixed manufacturingoverhead.)

Butler Company

Cost of Goods Sold Budget

Two Months Ended January 31 and February 28

January

February

Beginning inventory

Units produced and sold in each month

1650

200

Total budgeted cost of goods sold