Lemon, Inc. has prepared the following budgets for March. In March, budgeted production is 1,000 units, budgeted sales is 1,200 units, and direct materials inventory and unit costs will stay constant. Direct materials $ 12,750 Direct labor $ 19,150 Manufacturing overhead $ 24,750 Selling and administrative expense $ 20,750 What is budgeted cost of goods sold for March?
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Lemon, Inc. has prepared the following budgets for March. In March, budgeted production is 1,000 units, budgeted sales is 1,200 units, and direct materials inventory and unit costs will stay constant.
| Direct materials | $ | 12,750 |
| Direct labor | $ | 19,150 |
| Manufacturing |
$ | 24,750 |
| Selling and administrative expense | $ | 20,750 |
What is budgeted cost of goods sold for March?
Multiple Choice
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$65,980
-
$56,650
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$54,424
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$67,980
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