Sold reported in the :budgeted income statement for 2022 is $450,000 a O $850,000 b0 $650,000 O $1.050.000 d O None of the given answers e O

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bowshar Hills Company sells shoes and expects to produce and sell 40,000 units during the year 2022 with no beginning or ending inventories as it
plans to produce what it can sell during the same year. The total budgeted fixed manufacturing overhead cost for the year is $50,000. The company
accounts show that the budgeted direct material cost is $4 per unit, budgeted direct labor cost is $6 per direct labor hour, and budgeted variable
manufacturing overhead is $2 per direct labor hour. Each unit produced takes 2 hours of skilled labor time. The cost of goods sold reported in the
:budgeted income statement for 2022 is
$450,000 a O
$850,000 b0
$650,000 cO
$1,050,000 d O
None of the given answers
e O
Transcribed Image Text:Bowshar Hills Company sells shoes and expects to produce and sell 40,000 units during the year 2022 with no beginning or ending inventories as it plans to produce what it can sell during the same year. The total budgeted fixed manufacturing overhead cost for the year is $50,000. The company accounts show that the budgeted direct material cost is $4 per unit, budgeted direct labor cost is $6 per direct labor hour, and budgeted variable manufacturing overhead is $2 per direct labor hour. Each unit produced takes 2 hours of skilled labor time. The cost of goods sold reported in the :budgeted income statement for 2022 is $450,000 a O $850,000 b0 $650,000 cO $1,050,000 d O None of the given answers e O
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