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

question 35

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 manufactured in 2012?

• A) $1,020,000
• B) $986,000
• C) $1,156,000
• D) $1,190,000
• E) $1,054,000

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Definitions:

Price Change

The fluctuation in the selling price of goods or services over a period of time.

Moral Obligation

A duty or commitment that is not legally enforceable but is dictated by personal ethics or social norms.

Adequate Consideration

Sufficient value that is fairly exchanged between parties in a contract.

Legal Duty

An obligation imposed by law on individuals or entities, requiring them to conform to a standard of conduct for the protection of others against unreasonable risks.