7) Alpha Company has provided projected information as follows: Net sales $10,00

Question

7) Alpha Company has provided projected information as follows:

                     Net sales                                                $10,000

                     Fixed manufacturing costs      $1,000

Additionally, Alpha has experienced a variable manufacturing costs of 45% of net sales and sees not changes during the budget period. Alpha expects that there will be no changes to any inventory values. Use this information to determine Alpha's: . (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

            1. Budgeted Cost of Goods Sold

            2. Budgeted Gross Profit

Explanation / Answer

1)

Budgeted Cost of goods sold = Variable manufacturing costs + Fixed manufacturing costs

= 10000*45% + 1000 = 4500 +1000 = 5500

2)

Budgeted Gross Profit = Net sales - Budgeted Cost of goods sold

= 10000 - 5500 = 4500

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