Question

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 90000 units on hand, the sales department budgeted sales of 400000 units in June, and the company desires to have 220000 units on hand on June 30. The budgeted cost of goods sold for June would be $14700000. $12000000. $8100000. $15900000.

Answer 1

Answer:

$12000000

Explanation:

Cost of Goods sold is the cost of the unit sold which is incurred to produce / purchase that products. It is calculated by multiplying the Units sold with production cost per unit.

Calculate the numbers of units sold

Cost of Goods Sold = numbers of Unit sold x Production cost per unit

Cost of Goods Sold = 400,000 x $30

Cost of Goods Sold = $12,000,000