Question

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 $29,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $34,000, and $22,000, respectively. Direct materials purchases were $555,000, direct labor was $244,000 for the year, and factory overhead was $159,000.

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			$fill in the blank 1
Work in process inventory, January 1		$fill in the blank 2
Direct materials:
Direct materials, January 1	$fill in the blank 3
Direct materials purchases	fill in the blank 4
Cost of direct materials available for sale	$fill in the blank 5
Direct materials inventory, December 31	fill in the blank 6
Cost of direct materials placed in production	$fill in the blank 7
Direct labor	fill in the blank 8
Factory overhead	fill in the blank 9
Total manufacturing costs		fill in the blank 10
Total work in process during the period		$fill in the blank 11
Work in process inventory, December 31		fill in the blank 12
Cost of goods manufactured			fill in the blank 13
Cost of finished goods available for sale			$fill in the blank 14
Finished goods inventory, December 31			fill in the blank 15
Cost of goods sold			$fill in the blank 16

Answer 1

Cost of goods sold budget
Finished goods inventory, January 1			$          40,000
work in process inventory, Janaury 1		$       31,000
Direct materials :
Direct material, Janaury 1	$       29,000
purchase	$     555,000
Cost of direct material available for sale	$     584,000
less:   Direct material, Dec 31	$       22,000
Cost of direct material placed in production	$     562,000
Direct labor	$     244,000
Factory overhead	$     159,000
Total manufacturing cost		$     965,000
Total work in process during the period		$     996,000
less: work in process inventory,Dec 31		$       34,000
Cost of goods manufactured			$        962,000
Cost of finished goods available for sale			$     1,002,000
less:Finished goods inventory, Dec 31			$          42,000
Cost of goods sold			$        960,000