Question

Preparing a Cost of Goods Sold Budget

Answer 1

Answer:

Direct Materials      $    14*20,000            = $ 28000

Direct Labor            $  14*1.9* 20,000       = $ 532,000

Variable Overhead  $ 14*1.9*1.2*20,000  = $ 638400

Fixed Overhead $ 14*1.9*1.8*20,000  =  $957600

Total Manufacturing Cost $                = 2156000

Less: Ending Inventory $   107.8*730 = 78649

Cost of Goods Sold                      $2077306

Working:

Total Manufacturing Cost $  per unit      = 2156000/ 20,000= 107.8 $

Ending Inventory $   107.8*730 = 78649