Answer the Following Questions Using the Information Below

Multiple Choice

Answer the following questions using the information below:
Kason, Inc., expects to sell 20,000 pool cues for $24.00 each. Direct materials costs are $4.00, direct manufacturing labor is $8.00, and manufacturing overhead is $1.60 per pool cue. The following inventory levels apply to 2011:

-On the 2012 budgeted income statement, what amount will be reported for cost of goods sold?

A) $278,800
B) $272,000
C) $265,200
D) $306,000