MFL Sales expects to sell 460 units of Product A and 450 units of Product B each day at an average price of $15 for Product A and $33 for Product B.The expected cost for Product A is 38% of its selling price and the expected cost for Product B is 57% of its selling price.MFL Sales has no beginning inventory,but it wants to have a six-day supply of ending inventory for each product.Compute the budgeted cost of goods sold for the next (seven-day)week.(Round the answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

D)Cost of goods sold = (Selling price × % expected cost )× units
Cost of goods sold:
Product A: ($15 × 38%)× (460 units × 7 days)= $18,354
Product B: ($33 × 57%)× (450 units × 7 days)= $59,252
Total cost of goods sold: $18,354 + $59,252 = $77,606

MFL Sales Expects to Sell 460 Units of Product a and 450