First Class, Inc

Multiple Choice

First Class, Inc., expects to sell 26,000 pool cues for $14 each. Direct materials costs are $2, direct manufacturing labor is $4, and manufacturing overhead is $0.89 per pool cue. The following inventory levels apply to 2019:

On the 2019 budgeted income statement, what amount will be reported for cost of goods sold?

A) $189,475
B) $179,140
C) $168,805
D) $201,877