Question

Cost of Goods Sold Budget

The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:

Direct materials:	Enamel		Paint		Porcelain		Total
Total direct materials purchases budgeted for September	$37,470		$7,870		$146,130		$191,470
Estimated inventory, September 1	2,380		5,710		9,520		17,610
Desired inventory, September 30	2,670		2,430		6,410		11,510
Direct labor cost:	Kiln Department		Decorating Department				Total
Total direct labor cost budgeted for September	$49,550		$143,700				$193,250
Finished goods inventories:	Dish		Bowl		Figurine		Total
Estimated inventory, September 1	$5,280		$3,010		$2,480		$10,770
Desired inventory, September 30	3,380		4,170		3,960		11,510
Work in process inventories:
Estimated inventory, September 1	$3,220
Desired inventory, September 30	1,800
Budgeted factory overhead costs for September:
Indirect factory wages	$74,300
Depreciation of plant and equipment	10,640
Power and light	4,720
Indirect materials	3,310
Total	92,970

Use the preceding information to prepare a cost of goods sold budget for September. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

MingWare Ceramics Inc.
Cost of Goods Sold Budget
For the Month Ending September 30
			$
		$
Direct materials:
	$
	$
	$
Direct labor
		$
Work in process inventory, September 30
			$
			$

Answer 1

	Budgeted cost of goods sold
	Direct materials used:
	Beginning raw materials inventory			17610
	Add:budgeted direct material purchase			191470
	Total raw materials available			209080
	Less: Ending raw materials inventory			11510
	Direct materials used				197570
	Direct labor				193250
	Factory overhead
	Indirect factory wages			74300
	Depreciation of plant and equipment			10640
	Power and light			4720
	Indirect materials			3310
	Total manufacturing overhead				92970
	Total manufacturing cost				483790
	Add: Beginning work in process inventory				3220
					487010
	Les: Ending work in process inventory				1800
	Cost of goods manufactured				485210
	Add: beginning finished goods inventory				10770
	Total goods available for sale				495980
	Less:ending finished goods inventory				11510
	Cost of goods sold				484470