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

question 164

Multiple Choice

Use the information below to answer the following question(s) .
Marguerite Inc..expects to sell 20,000 pool cues for $20.00 each.Direct materials costs are $2.00,direct manufacturing labour is $12.00,and manufacturing overhead is $0.80 per pool cue.Each pool cue requires 0.5 kilograms (kg) of material which is all added at the start of production.The units in work-in-process beginning and ending inventory were half complete as to direct labour and manufacturing overhead costs;the units in beginning inventory are completed before new units are started..Each pool cue requires one hour of direct labour,and manufacturing overhead is allocated based on direct labour hours.The following inventory levels are expected to apply to 2016:

-On the 2016 budgeted income statement,what amount will be reported for cost of goods sold?

• A)$296,000
• B)$280,000
• C)$276,000
• D)$290,000
• E)$292,000

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Definitions:

Automated Teller Machine Card

A plastic card linked to a bank account, used at ATMs for transactions such as cash withdrawals, deposits, and balance checks.

Bank Account

A bank account is a financial account maintained by a banking institution in which the deposits, withdrawals, and balances of cash are recorded for the account holder.

Adjustment Costs

The costs associated with holding too little cash.

Carrying Costs

Expenses associated with holding or storing inventory, including warehousing, insurance, tax, and depreciation.