Question

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1, there were 89000 units on hand, the sales department budgeted sales of 390000 units in June, and the company desires to have 200000 units on hand on June 30. The budgeted cost of goods sold for June would be

Answer 1

COGS= $8,370,000

Step-by-step explanation:

Giving the following information:

Unitary cost= $30

Beginning inventory= 89,000

Sales= 390,000

Ending inventory= 200,000

First, we need to calculate the number of units sold:

Units sold= 89,000 + 390,000 - 200,000

Units sold= 279,000

Now, the cost of goods sold:

COGS= 279,000*30= $8,370,000