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Questions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Questions

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
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  • September 26, 2020 at 9:12 am #586754
    daisy598
    Member
    • Topics: 13
    • Replies: 6
    • ☆

    What is the budgeted cost of goods sold given the following for next budget period (in $’000)? Sales 5,000; Fixed manufacturing costs 2,000; Variable manufacturing costs are 40% of sales revenue. Inventory levels are expected to remain constant.

    Answer: $4,000,000

    September 26, 2020 at 2:30 pm #586779
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54674
    • ☆☆☆☆☆

    The variable manufacturing costs are 40% x $5,000,000 = $2,000,000
    The fixed manufacturing costs are $2,000,000

    Therefore the total cost = 2,000,000 + 2,000,000 = $4,000,000

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