Question

Preparing an operating budget-cost of goods sold budget

Butler Company expects to sell, 1,650 units in January and 1,550 units in February. The company expects to incur the following product costs:

The beginning balance in Finished Goods Inventory is 250 units at $200 each for a total of $50,000. Butler uses FIFO inventory costing method. Prepare the cost of goods sold budget for Butler for January and February.

Direct materials cost per unit
Direct labor cost per unit
$ 85
60
Manufacturing overhead cost per unit
55
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Transcribed Image Text

Direct materials cost per unit Direct labor cost per unit $ 85 60 Manufacturing overhead cost per unit 55

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