Question
Presented is selected first quarter budget data for the Barney Company: Sales January 25,000 units February 20,000 units March 42,000 units Additional information: Each unit
Presented is selected first quarter budget data for the Barney Company:
Sales | |
January | 25,000 units |
February | 20,000 units |
March | 42,000 units |
Additional information:
Each unit of finished product requires two pounds of raw materials.
Barney maintains ending finished goods inventories equal to 25 percent of the following month's budgeted sales.
Barney maintains raw materials inventories equal to 20 percent of the following month's budgeted production.
January 1 inventories are in line with Barney's inventory policy.
Presented is additional information for the Barney Company Price per pound of raw materials $25 Direct labor per unit of finished product 0.50 hours at $20 per hour Total monthly factory overhead $150,000 + $10 per direct labor hour Barney's total manufacturing cost budget for January is:
Select one:
A. $1,575,000
B. $1,717,500
C. $1,693,750
D. $1,425,000
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