Question
Company A expects to sell 26,000 pencil cases for $14 each. Direct materials costs are $2, direct manufacturing labor is $4, and manufacturing overhead is
Company A expects to sell 26,000 pencil cases for $14 each. Direct materials costs are $2, direct manufacturing labor is $4, and manufacturing overhead is $0.89 per pencil case. The following inventory levels apply to 2021: Beginning Direct Material Inventory: 31,000 units Ending Direct Material Inventory: 31,000 units Beginning Finished Goods Inventory: 1,900 units Ending Finished Goods Inventory: 3,400 units
1) [1 point] On the 2021 budgeted income statement, what amount will be reported for cost of goods sold?
2) [1 point] What are the 2021 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started