Jason Company Determined That the Budgeted Cost of Producing a Product

question 117

Multiple Choice

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

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Definitions:

Cash Budget

Budget that shows cash inflows and outflows during a period of time.

Shareholders' Equity

The portion of a company's assets that belongs to shareholders after liabilities have been subtracted; also known as net assets or equity.

Credit Statement

A detailed report of an individual's or company's credit history and current credit standing, used by lenders to evaluate creditworthiness.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.