Ceder Company has compilied the following data for the upcoming year Sales are e

Question

Ceder Company has compilied the following data for the upcoming year Sales are expected to be 16,500 units at S53.00 each. Each unit requires 2 pounds of direct materials at $2.50 per pound. Each unit requires 2.2 hours of direct labor at $14.00 per hour. Manufacturing overhead is $5.00 per unit. Beginning raw materials inventory is $5,500.00. Ending raw materials inventory is $7,100.00. Selling and administrative costs totaled $138,870. . . . . Required: 1. Determine Ceder's budgeted cost of goods sold. (Do not round the intermediate values.) Budgeted Cost of Goods Sold 2. Complete Ceder's budgeted income statement. (Do not round the intermediate values.) CEDER CORP Budgeted Income Statement Budgeted Gross Margin Budgeted Net Operating Income

Explanation / Answer

Ans :

(1)

Budgeted cost of goods sold = $ 671,600

(2)  

Particulars Amount Calculation Direct materials 82500 16500 units*2*$ 2.5 Direct Labour 508200 16500 units *2.2*$14 Manufacturing overhead 82500 16500 units*$5 Add: Beginning raw material inventory 5500 Less: Ending raw material inventory 7100 Cost of goods sold 671600

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