Answer question 4 to 7 by making use of the following information: Sea & Co expe

Question

Answer question 4 to 7 by making use of the following information:

Sea & Co expects to sell 17 000 floating boards for $13.00 each. Direct materials costs are $4.00, direct manufacturing labour is $2.50, and manufacturing overhead is $1.20 per floating board. The following inventory levels apply to the budget period (2017):

7) On the 2017 budgeted income statement, what amount will be the reported amount for cost of goods sold?

Select one:

a. $184 800

b. $154 000

c. $140 140

d. $130 900

Beginning inventory Ending inventory Direct materials 18 000 units 18 000 units Work-in-process inventory 0 units 0 units Finished goods inventory 3 000 units 4 200 units

Explanation / Answer

Cost of goods sold = 17000*(4+2.5+1.2)= 130900 Option D is correct

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