Answer:
c) $9,000,000
Explanation:
The cost of good sold = Cost per unit × Quantity sold
Quantity sold = 300,000, cost per unit = $30
The cost of sold = $30 × 300,000 = $9,000,000
This can be confirmed as follows:
Unit
opening inventory 80,000
Production(see note below) <u> 340,000</u>
Available or sale 420,000
Closing inventory <u>(120,000)</u>
Units sold <u>300,000</u>
Cost of units sold = 300,000 × $30 = $9,000,000
Note :
Production budget = sales budget + closing inventory - opening inventory
= 300,000 + 120,000 - 80,000 = 340,000 units
