Question

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 86000 units on hand, the sales department budgeted sales of 370000 units in June, and the company desires to have 160000 units on hand on June 30. The budgeted cost of goods sold for June would be

Answer 1

The budgeted cost of goods sold for June would be $ 13,320,000

Step-by-step explanation:

Budgeted cost per unit = $30

Sales budget = 370,000 units

Less: Beginning inventory = 86,000 units

Add: Ending inventory = 160,000 units

Therefore budgeted cost of goods sold for June = (370,000 - 86,000 + 160,000) × $30

= 444,000 × $30

= $13,320,000