A Company Has the Following Annual Budget Data What Are Total Budgeted Production Costs for the Year? (CIA

question 138

Multiple Choice

A company has the following annual budget data:
$$\begin{array} { | l | l | } \hline \text { Beginning finished goods inventory } & 40,000 \text { units } \\\hline \text { Sales } & 70,000 \text { units } \\\hline \text { Ending finished goods inventory } & 30,000 \text { units } \\\hline \text { Direct materials } & \$ 10 \text { per unit } \\\hline \text { Direct labor } & \$ 20 \text { per unit } \\\hline \text { Variable factory ou erhead } & \$ 5 \text { per unit } \\\hline \text { Selling costs } & \$ 2 \text { per unit } \\\hline \text { Fixed factory overhead } & \$ 80,000 \\\hline\end{array}$$ What are total budgeted production costs for the year? (CIA adapted)

• A) $2,100,000.
• B) $2,180,000.
• C) $2,240,000.
• D) $2,320,000.

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Definitions:

Meconium

The first feces of a newborn, which is thick, sticky, and greenish-black in color.

Milk Stool

The typical appearance of an infant's feces, especially those who are breastfed, characterized by its soft, loose texture and yellowish color.

Miliaria

A skin condition commonly known as heat rash, caused by blocked sweat ducts and resulting in small, itchy rashes.

Parietal Bones

A pair of bones forming the sides and roof of the cranium (skull), each positioned above the temporal bone and behind the frontal bone.