Question

Company "X", expects to sell 50,000 units for $20.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $2 per unit. The following inventory levels to 2018: At are the head, respo Beginning inventory Direct materials 20,000 units Work-in-process inventory 0 units Finished goods inventory 2,000 units D) $0; $1999 B) $78.00 Ending inventory 20,000 units C) $162 0 units 3) On the 2018 budgeted income statement, what amount will be reported for sales? 2,500 units (3 points) A) $492,000 B) $480,000 C) $1,624,000 D) $1,000,000 E) None of these answers are correct Show your work 4) How many units need to be produced in 2018? (3 points) A) 22,500 B) 22,000 C) 50,500 D) 40,500 E) None of these answers are correct Show your work 5) On the 2018 budgeted income stateme (3 points) budgeted income statement, what amount will be reported for cost of goods sold? A) $278,800 B) $272,000 C) $700,000 D) $560,000 E) None of these answers are correct Show your work

Answer 1

1 3 2 Expected unit sales 3 Unit selling price 4 Sales 5 Thus, the correct option is 'D. $1,000,000'. 50,000 $20.00 $1,000,000 2.500 50,000 -2.000 50,500 7 4 8 Finished goods inventory, ending 9 Add: Expected unit sales 10 Less: Finished goods inventory, beginning 11 Units produced 12 Thus, the correct option is 'C. 50,500'. 13 14 5 15 Expected unit sales 16 Unit product cost 17 Cost of goods sold 18 Thus, the correct option is 'C. $700,000'. 50.000 $14.00 $700.000 Calculations are shown below: 50000 1 3 2 Expected unit sales 3 Unit selling price 4 Sales 5 Thus, the correct option is 'D. $1,000,000'. 20 =B2*B3 2500 50000 -2000 =SUM(B8:B10 7 4 8 Finished goods inventory, ending 9 Add: Expected unit sales 10 Less: Finished goods inventory, beginning 11 Units produced 12 Thus, the correct option is 'C. 50,500'. 13 14 5 15 Expected unit sales 16 Unit product cost 17 Cost of goods sold 18 Thus, the correct option is 'C. $700,000'. 50000 =4+8+2 =B15*316