Multiple Choice
Use the information below to answer the following question(s) .
Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2015.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 labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard.
-What will be Fair Score Company's budgeted total cost of direct materials used in 2015?
A) $3,400,000
B) $3,800,000
C) $3,600,000
D) $3,200,000
E) $3,155,000
Correct Answer:
Verified
Correct Answer:
Verified
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