What is the budgeted production

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Reference no: EM133127336

Questions -

Q1. Dusan, Ltd. showed the following for the year ended 31 December 2021. What will the cost of goods sold be, as reported in the 2021 income statement of the company? (Assume absorption costing)

Sales revenue 310,000 €

Direct manufacturing labor costs 12,000 €

Indirect manufacturing costs 42,000 €

Beginning inventory of finished goods 50,000 €

Cost of goods manufactured 219,000 €

Ending inventory of finished goods 55,000 €

Marketing costs 18,000 €

1. 214

2. €196,000

3. €224,000

4. €206,000

Q2. Mickey, Inc. manufactures ball pens and has a master-budget capacity for 2022 of 452,000 units. Its target ending inventory for 2022 is 65,400 units, with a beginning inventory of 46,500 units. What is the budgeted production in 2022?

1. 452,000 units

2. 470,900 units

3. 517,400 units

4. 498,500 units

Q3. Suppose a company shows an operating income of €15,000, fixed costs of €300,000, contribution margin per unit of €2 , and selling price of €10. What is the contribution margin of the company?

1. €240,000

2. €200,000

3. €315,000

4. €285,000

Reference no: EM133127336

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