Kason, Inc., expects to sell 23,000 pool cues for $12.00 each. Direct materials
ID: 2559955 • Letter: K
Question
Kason, Inc., expects to sell 23,000 pool cues for $12.00 each. Direct materials costs are $4.00, direct manufacturing labor is $5.00,
and manufacturing overhead is $0.88 per pool cue. The following inventory levels apply to 2016:
Beginning inventory
Ending inventory
Direct materials
30,000
units
30,000
units
Work-in-process inventory
0
units
0
units
Finished goods inventory
1,200
units
2,900
units
On the 2016 budgeted income statement, what amount will be reported for cost of goods sold?
Beginning inventory
Ending inventory
Direct materials
30,000
units
30,000
units
Work-in-process inventory
0
units
0
units
Finished goods inventory
1,200
units
2,900
units
Explanation / Answer
Cost of goods sold = 23000*(4+5+0.88)= 227240
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