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Lakers manufactures Hockey kits. It expects to sell 20,000 Hockey kits in 2020. The company has enough beginning inventory of direct materials to produce 8,000
Lakers manufactures Hockey kits. It expects to sell 20,000 Hockey kits in 2020. The company has enough beginning inventory of direct materials to produce 8,000 units. Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labor and overhead. Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units. The Hockey kits sell for $800. There is no ending work-in-process inventory. Direct materials costs for each Hockey kit total $220 while direct labor is $90. Manufacturing overhead is $70 per Hockey kit. What will be Laker's budgeted amount of cost of goods sold
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