Sonder Inc. is producing its cost of sales budget. Direct materials are budgeted to be 60% of sales value. However, due to the expansion of the company in the recent past, suppliers are giving Sonder Inc. a 2% discount on all purchases of direct materials by the firm. Budgeted sales for January 2020 are expected to be £200,000 and to rise by £10,000 a month in the budget year up to December 2020? Direct labour is expected to amount to 10% of sales value and variable overhead is budgeted to be 5% of direct labour cost?

 

What is the budgeted cost of sales (direct materials + direct labour + variable overhead) figure that will appear in the budgeted monthly statement of profit or loss for June 2020?