Question
Johnson Company manufactures tee shirts. This year, the company expects to sell 12,000tee shirts for $30each.Two yards ofdirect materialare required per tee shirt. Costs per
Johnson Company manufactures tee shirts. This year, the company expects to sell 12,000tee shirts for $30each.Two yards ofdirect materialare required per tee shirt. Costs per tee shirt are$6 for direct material, $12 for direct labor, and $3 for manufacturing overhead. During the year, direct material inventory will increase by 200 yards,and finished goods inventory will decline by 300 tee shirts. There is no work-in-process inventory at the beginning or end of the year.
Calculate the budgeted production costs for direct materials purchased, direct manufacturing labor, and manufacturing overhead, respectively.
$70,200; $140,400; $36,000
$72,000; $144,000; $36,000
$70,800; $140,400; $35,100
$141,600; $144,000; $35,100
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