Bradford, Inc., expects to sell 8,000 ceramic vases for $21 each. Direct materials costs are $4, direct manufacturing labor is $10, and manufacturing overhead is $4 per vase. The following inventory levels apply to 2019:

On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

Question

Bradford, Inc., expects to sell 8,000 ceramic vases for $21 each. Direct materials costs are $4, direct manufacturing labor is $10, and manufacturing overhead is $4 per vase. The following inventory levels apply to 2019:

On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

Quizplus · Accepted Answer

Cost of goods sold is $144,000 [8,000 × ($4 + $10 + $4)].