Question

First​ Class, Inc., expects to sell​ 26,000 pool cues for​ $14 each. Direct materials costs are​ $2, direct manufacturing labor is​ $4, and manufacturing overhead is​ $0.89 per pool cue. The following inventory levels apply to​ 2019: Beginning inventory Ending inventory Direct materials ​31,000 units ​31,000 units Workminusinminusprocess inventory 0 units 0 units Finished goods inventory ​1,800 units ​3,300 units On the 2019 budgeted income​ statement, what amount will be reported for cost of goods​ sold?
A) $201,877B) $189,475C) $168,805D) $179,140

Answer 1

Answer:

here correct option is D) $179,140

cost of goods sold of $179,140

Explanation:

given data

sell​ = 26,000

Direct Materials cost = $2

Direct Labor cost  = $4

Manufacturing Overhead  cost = $0.89

to find out

what amount will be reported for cost of goods​ sold

solution

we know here that Total Manufacturing Cost formula that is  

Total Manufacturing Cost = Direct Materials  + Direct Labor + Manufacturing Overhead    ............................1

put here value

Total Manufacturing Cost = $2 + $4 + $0.89

Total Manufacturing Cost  = $6.89

and

Cost of Goods Sold will be here

Cost of Goods Sold = Total Manufacturing Cost per cue × sold  cues

Cost of Goods Sold = $6.89 ×  26,000

Cost of Goods Sold = $179,140

so that here correct option is D) $179,140

cost of goods sold of $179,140