Harney,Inc.has prepared the following budgets for March.In March,budgeted production equals budgeted sales,and raw materials inventory will stay constant.What is budgeted cost of goods sold for March?

Question

Quizplus · Accepted Answer

Since the budgeted production equals the budgeted sales and raw materials inventory will stay constant, the cost of goods sold can be calculated as follows: 
Budgeted cost of goods sold = Direct materials used + Direct labor + Manufacturing overhead applied 
Using the information provided in the table, Direct materials used is equal to $15,800, Direct labor is equal to $6,240 and Manufacturing overhead applied is equal to $5,520. 
Therefore, Budgeted cost of goods sold = $15,800 + $6,240 + $5,520 = $27,560. 
Therefore, option C is the correct choice.