The following information relates to the 2019 budgets:
$$\begin{array} { l r }
\text { Sales } & \$ 450000 \
\text { Direct materials purchases } & 93000 \
\text { Direct labour } & 65000 \
\text { Manufacturing overhead } & 37000 \
\text { Capital expenditures } & 40000 \
\underline{ \text { Finished goods inventory } }& \
\text { Start of year }& \$ 28000 \
\text { End of year } & \$ 42000
\end{array}$$
Projected cost of sales for 2019 is:
A) $181 000.
B) $195 000.
C) $221 000.
D) $235 000.

Question

The following information relates to the 2019 budgets:
$$\begin{array} { l r } 
\text { Sales } & \$ 450000 \
\text { Direct materials purchases } & 93000 \
\text { Direct labour } & 65000 \
\text { Manufacturing overhead } & 37000 \
\text { Capital expenditures } & 40000 \
\underline{ \text { Finished goods inventory } }& \
\text { Start of year }& \$ 28000 \
\text { End of year } & \$ 42000
\end{array}$$
Projected cost of sales for 2019 is:
A) $181 000.
B) $195 000.
C) $221 000.
D) $235 000.

Quizplus · Accepted Answer

The cost of sales is calculated as: Direct materials purchases + Direct labour + Manufacturing overhead + Beginning inventory - Ending inventory = $93,000 + $65,000 + $37,000 + $28,000 - $42,000 = $181,000.

The Following Information Relates to the 2019 Budgets Projected Cost of Sales for 2019 Is: A) $181 000

The Following Information Relates to the 2019 Budgets Projected Cost of Sales for 2019 Is:
A) $181 000