XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or ending inventories. Budgeted direct material cost is $8 per unit, budgeted direct labor cost is $5 per direct labor hour, and budgeted variable manufacturing overhead is $13 per direct labor hour. Budgeted fixed manufacturing overhead cost for the year is $60,000 in total. Budgeted direct labor hours needed for the year is 30,000 hours in total. The budgeted cost of goods sold for the next year is: Select one: a. $690,000 O b. $720,000 c. $660,000 O d. None of the given answers e. $450,000
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.
![courses/ ACC12121_yasserg_fall20 / Final Exam_Fall2020 / Part Two
XYZ Company expects to produce and sell 15,000 units during the next year with no beginning or ending inventories.
Budgeted direct material cost is $8 per unit, budgeted direct labor cost is $5 per direct labor hour, and budgeted
variable manufacturing overhead is $13 per direct labor hour. Budgeted fixed manufacturing overhead cost for the year
is $60,000 in total. Budgeted direct labor hours needed for the year is 30,000 hours in total. The budgeted cost of
goods sold for the next year is:
Select one:
Oa. $690,000
O b. $720,000
c. $660,000
O d. None of the given answers
e. $450,000
XYZ Company's budgeted production in January is 185,000 units. Ending inventory should be 20% of the next month's
sales in units. February sales are expected to be 165,000 units. Budgeted sales for January would be (in units):
Select one:
a. 190,000
O b. None of the given answers
O C. 202,500
d. 196.250](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd70e2955-d85c-4c88-b1fa-52f35f33d78b%2F5b4ee94b-3c22-4ec4-b053-968b8fb9bacc%2F4kd9ve_processed.jpeg&w=3840&q=75)
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