First Class,Inc. ,expects to sell 26,000 pool cues for $14 each.Direct materials costs are $2,direct manufacturing labor is $4,and manufacturing overhead is $0.89 per pool cue.The following inventory levels apply to 2019:

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

Question

First Class,Inc. ,expects to sell 26,000 pool cues for $14 each.Direct materials costs are $2,direct manufacturing labor is $4,and manufacturing overhead is $0.89 per pool cue.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

The cost per unit is $6.89 ($2 + $4 + $0.89).Therefore,the total cost of goods sold is $179,140 ($6.89 × 26,000).