Projected unit sales are April, 6,000, May, 9,000, and June 7,000. Finished goods inventory is maintained at 60% of the following month's sales. If units cost $15 each to produce, how much is May's total cost of production?

Projected unit sales are April, 6,000, May, 9,000, and June 7,000. Finished goods inventory is maintained at 60% of the following month's sales. If units cost $15 each to produce, how much is May's total cost of production?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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I need help with this general accounting question using the proper accounting approach.

Projected unit sales are April, 6,000, May, 9,000, and June 7,000. Finished
goods inventory is maintained at 60% of the following month's sales. If units
cost $15 each to produce, how much is May's total cost of production?

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