Use the Information Below to Answer the Following Question(s)

question 90

Multiple Choice

Use the information below to answer the following question(s) .
Konrade Inc. expects to sell 30,000 athletic uniforms for $80 each in 2012. Direct materials costs are $20, direct manufacturing labour is $8, and manufacturing overhead is $6 for each uniform. Each uniform requires 2.0 square metres (sq. m.) of material which is all added at the start of production. The following inventory levels are expected to apply to 2012:

-What is the amount budgeted for cost of goods sold in 2012?

• A) $1,156,000
• B) $986,000
• C) $840,000
• D) $2,400,000
• E) $1,020,000

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Definitions:

Income Ratios

Financial metrics comparing various components of a company's income statement to assess performance and profitability.

Noncash Assets

Assets that are not in the form of cash and can include items such as property, equipment, and intellectual property.

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting its value in an arm's length transaction between willing parties.