Raimondo Corporation makes one product and has provided the following information:
A.The budgeted selling price per unit is $89.Budgeted unit sales for August is 8,300 units.
B.Each unit of finished goods requires 4 pounds of raw materials.The raw materials cost $2.00 per pound.
C.The direct labor wage rate is $21.00 per hour.Each unit of finished goods requires 2.6 direct labor-hours.
D.Manufacturing overhead is entirely variable and is $7.00 per direct labor-hour.
The estimated cost of goods sold for August is closest to:

Question

Quizplus · Accepted Answer

The estimated unit product cost is computed as follows:
 11ea7761_17ad_f212_81a5_9b4c1f440b42_TB2580_00 The estimated cost of goods sold for August is computed as follows:
 11ea7761_17ae_1923_81a5_5fa253984606_TB2580_00

Raimondo Corporation Makes One Product and Has Provided the Following