Jason Company determined that the budgeted cost of producing a product is $1.20 per unit.On June 1, there were 11,000 units on hand.The sales department budgeted sales of 320,000 units in June.The company desires to have 8,000 units on hand on June 30.How much is the budgeted cost of goods manufactured for June?
A)$380,400
B)$317,000
C)$323,000
D)$387,600

Question

Quizplus · Accepted Answer

The budgeted cost of goods manufactured for June can be calculated as follows: Budgeted production = (Budgeted sales + Desired ending inventory) - Beginning inventory = (320,000 + 8,000) - 11,000 = 317,000 units. Then, the budgeted cost of goods manufactured = Budgeted production * Budgeted cost per unit = 317,000 units * $1.20/unit = $380,400.

Jason Company Determined That the Budgeted Cost of Producing a Product