The Magnolia Company Has Budgeted for Sales of 150 000

Multiple Choice

The Magnolia Company has budgeted for sales of 150 000 units of its product for the year. Expected unit costs, based on past experience, should be $18 for direct materials, $15 for direct labour and $20 for manufacturing overhead. Assume no beginning and ending work in process inventories. The Magnolia Company begins the year with 30 000 finished units on hand and budgets the ending finished goods inventory at 20 000 units. Compute the budgeted production in units and dollars.

A) 140 000 units @ $33 = $4 620 000
B) 140 000 units @ $53 = $7 420 000
C) 150 000 units @ $33 = $4 950 000
D) 150 000 units @ $53 = $7 950 000