CBAUOS Final Exanm Question 6 7 marks Donald Inc expects to

CBA-UOS? Final Exanm Question 6: (7 marks) Donald, Inc. expects to manufacture and sell 12.000 ceramic vases for $40 each. Direct materials costs are S4, direct manufacturing labor is $20, and manufacturing overhead is $6 per vase. The following inventory levels apply to 2017: Direct materials Work-in-process inventory Finished goods inventory 0 units 800 units 2,000 units 0 units 1,000 units a. On the 2017 budgeted income statement, what amount will be reported for sales? b. How many ceramic vases need to be produced in 2017? c. On the 2017 budgeted income statement, what amount will be reported for cost of goods sold What are the 2017 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively? d. End of Questions

Solution

a) Budgeted sales = 12000*$40 = $   4,80,000 b) Ceramic vases to be produced = 1000+12000-800 = 12200 c) Cost of goods sold to be reported = 12000*(4+20+6) = $   3,60,000 d) Budgeted cost for direct materials = 12200*4 = $       48,800 Budgeted cost for direct manufacturing labor = 12200*20 = $   2,44,000 Budgeted cost for manufacturing overhead = 12200*6 = $       73,200 Budgeted total production cost $   3,66,000