Question

A Golf company detemined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 60,000 units on hand, the sales department budgeted sales of 225,000 units in June, and the company desires to have 90,000 units on hand on June 30. The budgeted cost of goods sold for june would be:_____.

Answer 1

Answer:

Budgeted cost of goods sold = $7,650,000

Explanation:

Computation table for budgeted cost of goods sold

Particular                                          Amount

Total Sales                                 225,000

Add: Desired stock in hand         90,000

Less: Beginning stock             60,000  

Budgeted production                 255,000

Budgeted cost of goods sold = 255,000 x $30

Budgeted cost of goods sold = $7,650,000