57. CSO: 1A4a LOS: 1A4i
Petersons Planters Inc. budgeted the following amounts for the coming year.
Beginning inventory, finished goods $ 10,000
Cost of goods sold 400,000
Direct material used in production 100,000
Ending inventory, finished goods 25,000
Beginning and ending work-in-process inventory Zero
Overhead is estimated to be two times the amount of direct labor dollars. The amount
that should be budgeted for direct labor for the coming year is
a. $315,000.
b. $210,000.
c. $157,500.
d. $105,000.
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