Cooperstown Retros makes replica major league baseball jerseys that match those worn in the 1950s. The company budgeted production of 15,000 jerseys in 20Y1. Each jersey requires 1.5 square yards of wool fabric.

Wool fabric costs $14 per square yard. Each jersey requires cutting and assembly. Assume that 3.5 hours are required to cut and assemble each jersey. Labor costs are estimated at $20 per hour. Factory overhead was budgeted for $210,000.

Estimated January 1 and desired December 31 inventories are as follows:

Prepare

(a) a direct materials purchases budget,

(b) a direct labor cost budget, and

(c) a cost of goods sold budget for Cooperstown for the year ending December 31, 20Y1.

Transcribed Image Text:

Estimated inventory, January 1, 20Y1 Desired inventory, December 31, 20Y1 Direct Materials: Wool Fabric 2,250 sq.yds. 2,340 sq. yds. Work in Process $20,000 $24,500 Finished Goods $200,000 $230,000