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A Company Has the Following Annual Budget Data What Are Total Budgeted Production Costs for the Year? (CIA

Question 97

Multiple Choice

A company has the following annual budget data:
 Beginning finished goods inventory 40,000 units  Sales 70,000 units  Ending finished goods inventory 30,000 units  Direct materials $10 per unit  Direct labor $20 per unit  Variable factory overhead $5 per unit  Selling costs $2 per unit  Fixed factory overhead $80,000\begin{array}{ll}\text { Beginning finished goods inventory } & 40,000 \text { units } \\\text { Sales } & 70,000 \text { units } \\\text { Ending finished goods inventory } & 30,000 \text { units }\\\text { Direct materials } & \$ 10 \text { per unit } \\\text { Direct labor } & \$ 20 \text { per unit } \\\text { Variable factory overhead } & \$ 5 \text { per unit } \\\text { Selling costs } & \$ 2 \text { per unit } \\\text { Fixed factory overhead } & \$ 80,000\end{array}
What are total budgeted production costs for the year? (CIA adapted)


A) $2,100,000.
B) $2,180,000.
C) $2,240,000.
D) $2,320,000.

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