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Bunni, Inc. has prepared the following budgets for March. In March, budgeted production equals
budgeted sales, and raw materials inventory will stay constant.
What is budgeted cost of goods sold for March?
Direct materials $4,100
Direct labor $7,200
Manufacturing overhead $10,500
Selling and administrative expense $8,000
Solution
Cost of Goods sold does not include selling and administrative expenses as they are indirect
costs.
Hence, Cost of goods sold = Direct materials + Direct labor + Manufacturing overheads
= $4,100 + $7,200 + $10,500
= $21,800 (Answer)

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Bunni- Inc- has prepared the following budgets for March- In March- bu.docx

  • 1. Bunni, Inc. has prepared the following budgets for March. In March, budgeted production equals budgeted sales, and raw materials inventory will stay constant. What is budgeted cost of goods sold for March? Direct materials $4,100 Direct labor $7,200 Manufacturing overhead $10,500 Selling and administrative expense $8,000 Solution Cost of Goods sold does not include selling and administrative expenses as they are indirect costs. Hence, Cost of goods sold = Direct materials + Direct labor + Manufacturing overheads = $4,100 + $7,200 + $10,500 = $21,800 (Answer)