In: Accounting
Sleep Tight, Inc. manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $40,000, $31,000 and $28,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $33,000 and $22,000 respectively. Direct materials purchases were $570,000. Direct labor was $241,000 for the year. Factory overhead was $151,000.
Prepare a cost of goods sold budget for Sleep Tight, Inc.
Sleep Tight, Inc. | |||
Cost of Goods Sold Budget | |||
For the Year Ending December 31 | |||
Finished goods inventory, January 1 | $ | ||
Work in process inventory, January 1 | $ | ||
Direct materials: | |||
Direct materials, January 1 | $ | ||
Direct materials purchases | |||
Cost of direct materials available for sale | $ | ||
Less direct materials inventory, December 31 | |||
Cost of direct materials placed in production | $ | ||
Direct labor | |||
Factory overhead | |||
Total manufacturing costs | |||
Total work in process during the period | $ | ||
Less work in process inventory, December 31 | |||
Cost of goods manufactured | |||
Cost of finished goods available for sale | $ | ||
Less finished goods inventory, December 31 | |||
Cost of goods sold | $ |