The Classy Cats Company Has Budgeted for Sales of 100

Multiple Choice

The Classy Cats Company has budgeted for sales of 100 000 units of its product for the year. Expected unit costs, based on past experience, should be $60 for direct materials, $40 for direct labour and $30 for manufacturing overhead. Assume no beginning and ending work in process inventories. Classy Cats begins the year with 40 000 finished units on hand and budgets the ending finished goods inventory at 10 000 units. Compute the budgeted production in units and dollars.

A) 70 000 units @ $100 = $7 000 000
B) 70 000 units @ $130 = $9 100 000
C) 150 000 units @ $100 = $15 000 000
D) 150 000 units @ $130 = $19 500 000