Preparing a Cost of Goods Sold Budget
Andrews Company manufactures a line of office chairs. Each chair takes $20 of direct materials and uses 1.9 direct labor hours at $14 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour and the fixed overhead rate is $1.40 per direct labor hour. Andrews Company expects to produce 20,000 chairs next year and expects to have 630 chairs in ending inventory. There is no beginning inventory of chairs.
Required:
Prepare a cost of goods sold budget for Andrews Company. Round your answers to the nearest dollar.
Andrews Company
Cost of Goods Sold Budget
For the Coming Year
$
$
$