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: Beginning inventory Ending inventory Direct materials 31,000 units 31,000 units Workminusinminusprocess inventory 0 units 0 units Finished goods inventory 1,800 units 3,300 units On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?
A) $201,877B) $189,475C) $168,805D) $179,140

Question

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DeniceSandidge DeniceSandidge · Answer 1 · 2019-11-04T12:16:57+01:00

Answer:

here correct option is D) $179,140

cost of goods sold of $179,140

Explanation:

given data

sell = 26,000

Direct Materials cost = $2

Direct Labor cost = $4

Manufacturing Overhead cost = $0.89

to find out

what amount will be reported for cost of goods sold

solution

we know here that Total Manufacturing Cost formula that is

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead ............................1

put here value

Total Manufacturing Cost = $2 + $4 + $0.89

Total Manufacturing Cost = $6.89

and

Cost of Goods Sold will be here

Cost of Goods Sold = Total Manufacturing Cost per cue × sold cues

Cost of Goods Sold = $6.89 × 26,000

Cost of Goods Sold = $179,140

so that here correct option is D) $179,140

cost of goods sold of $179,140