Washington Inc, expects to sell 50,000 custom vases for $75 each in 2020. Planned direct materials costs are $30, direct manufacturing labor is $16, and manufacturing overhead is $4 for each vase. One unit of direct material is required for one unit of finished product. The following inventory levels apply: Beginning InventoryEnding InventoryDirect materials16,000 units21,000 unitsWork-in-process inventory0 units0 unitsFinished goods inventory9,000 units8,000 unitsRequired: Select the appropriate answer for both questions (1 and 2) below:1: The amount budgeted for direct material purchases in 2020 (in dollars) is: (Choose below)A: 1,728,000B: 1,620,000C: 1,408,000D: 1,472,000 E: 1,568,000F: None2: The amount budgeted for cost of goods manufactured in 2020 (in dollars) is A: 2,856,000 B: 3,248,000C: 2,450,000D: 2,744,000E: 3,080,000F: none

The cost of goods manufactured is the total amount incurred by an entity for producing the finished…

Answered: Washington Inc, expects to sell 50,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Washington Inc, expects to sell 50,000 custom vases for $75 each in 2020. Planned direct materials costs are $30, direct manufacturing labor is $16, and manufacturing overhead is $4 for each vase. One unit of direct material is required for one unit of finished product. The following inventory levels apply:

	Beginning Inventory	Ending Inventory
Direct materials	16,000 units	21,000 units
Work-in-process inventory	0 units	0 units
Finished goods inventory	9,000 units	8,000 units

Required: Select the appropriate answer for both questions (1 and 2) below:

1: The amount budgeted for direct material purchases in 2020 (in dollars) is: (Choose below)

A: 1,728,000

B: 1,620,000

C: 1,408,000

D: 1,472,000

E: 1,568,000

F: None

2: The amount budgeted for cost of goods manufactured in 2020 (in dollars) is

A: 2,856,000

B: 3,248,000

C: 2,450,000

D: 2,744,000

E: 3,080,000

F: none

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