Prepare a cost of goods sold budget for the Crest Hills Manufacturing Co. for the year ended December 31, 2016, from the following estimates.
Inventories of production units:
Finished
Goods
January 1, 2016................................................. $19,300
December 31, 2016............................................ 22,400
Direct materials purchased during the year, $854,000; beginning inventory of direct materials, $31,000; and ending inventory of direct materials, $26,000. Totals from other budgets included:
Direct labor cost................................................ $539,500
Total factory overhead costs............................ 818,000