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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:
a. Prepare a cost of goods sold budget for Andrews Company.
b. Calculate the unit product cost
c. Calculate the cost of budgeted ending inventory.
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Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and u...
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