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

question 63

Multiple Choice

Use the information below to answer the following question(s) .Fair Score Company manufactures scoreboards for athletic events.It expects to sell 20,000 scoreboards in 2018.The company has enough beginning inventory of direct materials to produce 8,000 units.Beginning work-in-process inventory totals 2,000 units and is 100 percent complete as to material and 50 percent complete as to labour and overhead.Beginning finished units total 4,000 with a target ending finished inventory of 3,000 units.The scoreboards sell for $800.There is no ending work-in-process inventory.Direct materials costs for each scoreboard total $200 while direct labour is $80.Manufacturing overhead is $60 per scoreboard.
-What will be the Fair Score Company budgeted amount of cost of goods sold?

• A)$8,160,000
• B)$6,800,000
• C)$6,460,000
• D)$6,120,000
• E)$5,975,000

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Definitions:

Subsidiary Company

A company that is controlled by another company, usually referred to as the parent company, through ownership of more than half of its voting stock.

Parent Company

A corporation that owns controlling interest in one or more other companies, referred to as subsidiaries.

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.

Parent Ltd

A corporation that holds a controlling interest in one or more other companies, also referred to as subsidiaries.