Question

Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $38,000, $32,000, and $28,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $34,000, and $22,000, respectively. Direct material purchases were $570,000, direct labor was $220,000 for the year, and factory overhead was $145,000.

Required:

Labels
For the Year Ending December 31
Direct materials
Amount Descriptions
Cost of direct materials placed in production
Cost of finished goods available for sale
Cost of direct materials available for use
Costs of good manufactured
Costs of goods sold
Direct labor
Direct materials inventory, December 31
Direct materials inventory, January 1
Direct materials purchases
Factory overhead
Finished goods inventory, December 31
Finished goods inventory, January 1
Total manufacturing costs
Total work in process during the period
Work in process inventory, December 31
Work in process inventory, January 1

Prepare a cost of goods sold budget for Sleep Tight, Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Be sure to complete the statement heading.

Sleep Tight, Inc.

Cost of Goods Sold Budget

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Answer 1

Sleep Tight Inc.
Cost Of Goods Sold Budget
Labels	Amount Descriptions
Finished goods inventory, January 1	$    38,000.00
Add: Costs of good manufactured	$ 939,000.00
Cost of finished goods available for sale	$ 977,000.00
Finished goods inventory, December 31	$    43,000.00
Cost of Goods Sold	$ 934,000.00

Sleep Tight Inc.
Cost of Goods manufactured Budget
Labels	Amount Descriptions	Amount Descriptions
Direct materials
Direct materials inventory, January 1	$    28,000.00
Direct materials purchases	$ 570,000.00
Cost of direct materials available for use	$ 598,000.00
Direct materials inventory, December 31	$    22,000.00
Cost of direct materials placed in production		$ 576,000.00
Direct labor		$ 220,000.00
Factory overhead		$ 145,000.00
Total Manufacturing Cost		$ 941,000.00
Add: Work in process inventory, January 1		$    32,000.00
Total work in process during the period		$ 973,000.00
Less: Work in process inventory, December 31		$    34,000.00
Costs of good manufactured		$ 939,000.00