1A4I PETERSONS PLANTERS INC. BUDGETED THE FOLLOWING AMOUNTS FOR THE C...

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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