First Class, Inc., expects to sell 26 comma 000 pool cues for $ 13.00 each. Direct materials costs are $ 2.00, direct manufacturing labor is $ 6.00, and manufacturing overhead is $ 0.89 per pool cue. The following inventory levels apply to 2019: Beginning inventory Ending inventory Direct materials 28 comma 000 units 28 comma 000 units Workminusinminusprocess inventory 0 units 0 units Finished goods inventory 1 comma 000 units 3 comma 200 units On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

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andromache andromache · Answer 1 · 2019-12-25T08:14:06+01:00

Answer:

$231,140

Explanation:

The computation of the amount reported in the cost of goods sold is shown below:

= Number of pool cues sold × total manufacturing cost per pool cue

where,

Number of pool cues sold would be 26,000 pool cues

And, the total manufacturing cost per pool cue would be

= Direct Materials per cue + Direct manufacturing Labor per cue + Manufacturing Overhead per cue

= $2 + $6 + $0.89

= $8.89

Now put these values to the above formula

So, the value would be equal to

= 26,000 cues × 8.89

= $231,140