Preparing cost of goods sold budget}

Prepare a cost of goods sold budget for the Magic Kingdom Manufacturing Company for the year ended December 31, 2008, from the following estimates: \(\square\)

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Inventories of production units: January 1, 2008........ Work in Process Finished Goods $28,500 $19,300 23,700 December 31, 2008 22,400 Direct materials purchased during the year, $854,000; beginning inven- tory of direct materials, $31,000; and ending inventory of direct materi- als, $26,000. Totals from other budgets included: Direct labor cost Total factory overhead costs $539,500 818,000