Question

Andrews Company manufactures a line of office chairs. Each chair takes $ 14 of direct materials and uses 1.9 direct labor hours at $ 16 per direct labor hour. The variable overhead rate is $ 1.20 per direct labor hour and the fixed overhead rate is $ 1.60 per direct labor hour. Andrews expects to produce 20,000 chairs next year and expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs.
Required:
Prepare a cost of goods sold budget for Andrews Company.


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  • CreatedSeptember 22, 2015
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