The company plans to sell 22,000 units of Product WZ in June. The finished-goods
ID: 2442988 • Letter: T
Question
The company plans to sell 22,000 units of Product WZ in June. The finished-goods inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively. The direct labor hours are 11,000 and the direct labor rate is $10.50. Budgeted direct-labor costs for June would be
A. $468,300.
B. $234,150.
C. $455,700.
D. $462,000.
The company plans to sell 22,000 units of Product WZ in June. The finished-goods inventories on June 1 and June 30 are budgeted to be 100 and 400 units, respectively. The direct labor hours are 11,000 and the direct labor rate is $10.50. Budgeted direct-labor costs for June would be
A. $468,300.
B. $234,150.
C. $455,700.
D. $462,000.
Explanation / Answer
Cost of good sold = Sales + closing Inventory - Opening Inventory
= 22,000 + 400 - 100 = 22,300
Budgeted direct-labor costs for June = 22,300 * $10.50 = $234,150
B. $234,150