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When preparing the cost of goods sold​ budget, ________. A. multiply units produced by the total projected cost per unit B. ignore the inventory costing method C. start by calculating the projected cost to produce each unit D. ignore balances in Finished Goods Inventory

Respuesta :

hyderali230

Answer:

C. start by calculating the projected cost to produce each unit

Explanation:

Cost of goods sold is the inventory cost which is associated with only those unit which was sold during the period.

Whereas multiplying units produced by the total projected cost per unit is the calculation of estimated total manufacturing cost.

An Inventory costing method cannot be ignored because These methods make the basis for the inventory value.

Balance in finished goods inventory is used in the calculation of Cost of Goods Sold.

Cost of Goods Sold = Total Manufacturing Cost + Beginning finished goods inventory - Ending finished goods inventory

Only correct option is start by calculating the projected production cost per unit. Which will determine the inventory values.

jepessoa

Answer:

A) multiply units produced by the total projected cost per unit

Explanation:

The cost of goods sold budget should include the expenses incurred in the production of goods (budgeted direct materials, labor ad overhead).

It is part of the operating budget and it can be used to estimate gross profit.

Once we have determined the estimated (or projected) cost per unit manufactured, we multiply that amount by the budgeted output to have an estimate of cost of goods sold.

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