Atlantic, Inc. has prepared the following budgets for March. In March, budgeted

Question

Atlantic, Inc. has prepared the following budgets for March. In March, budgeted production equals budgeted sales of 1,000 units, and raw materials inventory will stay constant.

tlantic, Inc. has prepared the following budgets for March. In March, budgeted production equals budgeted sales of 1,000 units, and raw materials inventory will stay constant. Direct materials $6.00 per unit Direct labor $10.80 per unit Variable manufacturing overhead $7.50 per unit Fixed manufacturing overhead $7,500 What is budgeted cost of goods sold for March? O $24,300 O $16,800 O $31,800 O $43,800

Explanation / Answer

given data

budgeted sales = 1000 units

direct material = 6.00 per unit

direct labor = 10.80 per unit

variable manufacturing overheads = 7.5 per unit

fixed manufacturing overheads = 7500

calculation of budgeted cost of goods sold :

Therefore the budgeted cost of coods sold is = $ 31800

option c is correct

particulars amount direct material (1000 * 6) 6000 direct labor (1000 * 10.80) 10800 variable manufacturing overhead (1000 * 7.5) 7500 fixed manufacturing overhead 7500 BUDGETED COST OF GOODS SOLD 31800

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