A Company Determined That the Budgeted Cost of Producing a Product

question 134

Multiple Choice

A company determined that the budgeted cost of producing a product is $30 per unit. On June 1 there were 80000 units on hand the sales department budgeted sales of 300000 units in June and the company desires to have 120000 units on hand on June 30. The budgeted cost of goods sold for June would be

• A) $7800000.
• B) $11400000.
• C) $9000000.
• D) $10200000.

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Definitions:

Simplify

To reduce a mathematical expression to its most basic form, making it easier to work with.

Multiply

To increase a number by a specified factor, or the operation of adding a number to itself a certain number of times.

Simplify

To alter an expression to make it easier to understand or work with, often by combining like terms or applying mathematical operations.

Multiply

The process of calculating the total of one number added to itself a specified number of times.