Next year's sales forecast shows that 20,000 units of Product A and 22,000 units of Product B are going to be sold for prices of $10 and $12 per unit, respectively. The desired ending inventory of Product A is 20% higher than its beginning inventory of 2,000 units. The beginning inventory of Product B is 2,500 units. The desired ending inventory of Product B is 3,000 units.
-The budgeted finished goods inventory and cost of goods sold for a manufacturing company for the year are as follows: January 1 finished goods, $765,000; December 31 finished goods, $640,000; and cost of goods sold, $2,560,000. The budgeted cost of goods manufactured is

Question

Quizplus · Accepted Answer

The budgeted cost of goods manufactured can be calculated using the formula: Beginning Finished Goods + Cost of Goods Manufactured - Ending Finished Goods = Cost of Goods Sold. Rearranging the formula to solve for Cost of Goods Manufactured gives: Cost of Goods Manufactured = Cost of Goods Sold + Ending Finished Goods - Beginning Finished Goods. Plugging in the given values: $2,560,000 + $640,000 - $765,000 = $2,435,000.

Next Year's Sales Forecast Shows That 20,000 Units of Product