Next Year's Sales Forecast Shows That 20,000 Units of Product

Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.
-Consider Derek's budget information: Materials to be used total $64,750; direct labor totals $198,400; factory overhead totals $394,800; work in process inventory on January 1 is $189,100; and work in progress inventory on December 31 is $197,600. The budgeted cost of goods manufactured for the year is

A) $649,450
B) $657,950
C) $197,600
D) $1,044,650

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free