Joseph is calculating the budgeted cost of goods sold for Landes Inc., a manufacturer of leather bags, to verify their sales revenue. From the company's policy, it is known that the company maintains zero work-in-process (WIP) inventory. Departmental managers provided him their budgeted reports, but Joseph realized that there is much to interpret. To save his time Joseph decided to pull the following figures from all available reports:
Joseph's analysis shows that the company's budgeted cost of goods sold is (Do not round intermediate calculations, and round the final answer to the nearest dollar.)

Question

Joseph is calculating the budgeted cost of goods sold for Landes Inc., a manufacturer of leather bags, to verify their sales revenue. From the company's policy, it is known that the company maintains zero work-in-process (WIP) inventory. Departmental managers provided him their budgeted reports, but Joseph realized that there is much to interpret. To save his time Joseph decided to pull the following figures from all available reports:
 Joseph's analysis shows that the company's budgeted cost of goods sold is (Do not round intermediate calculations, and round the final answer to the nearest dollar.)

Quizplus · Accepted Answer

Budgeted Cost of Goods Manufactured = Budgeted Cost of Direct Material Used + Budgeted Cost of Direct Labor Incurred + Budgeted Cost of Manufacturing Overhead Incurred;
Budgeted Cost of Goods Sold = Budgeted Beginning Finished Goods Inventory + Budgeted Cost of Goods Manufactured - Budgeted Ending Finished Goods Inventory;
Budgeted Cost of Goods Manufactured = $40,250 + $8,760 + $2,560 = $51,570
Budgeted Unit Cost = (Budgeted Cost of Goods Manufactured)/(Budgeted Number of Units Produced) = $51,570/500 = $103.14
Budgeted Cost of Goods Sold = (260 × $103.14) + $51,570 F1F1F1S1?F1F1F10 (50 × $103.14) = $26,816.4 + $51,570 F1F1F1S1?F1F1F10 $5,157 = $73,229.4

Joseph Is Calculating the Budgeted Cost of Goods Sold for Landes