Question
Cornerstone Exercise 8.7 (Algorithmic) Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct
Cornerstone Exercise 8.7 (Algorithmic) Cost of Goods Sold Budget
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:
Direct materials | $1.85 |
Direct labor | 0.50 |
Variable overhead | 0.75 |
Fixed overhead | 1.80 |
Total unit cost | $4.90 |
For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 389,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.)
Required:
1.Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead.
Budgeted direct materials | $ |
Budgeted direct labor | |
Budgeted overhead | |
Total budgeted manufacturing cost | $ |
2.Prepare a cost of goods sold budget for Play-Disc for the year.
|
3.What ifthe beginning inventory of finished goods was $92,200 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would- Select your answer -increasedecreaseCorrect 1 of Item 3to$
Cornerstone Exercise 8.7 (Algorithmic) Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.85 Direct labor 0.50 Variable overhead 0.75 Fixed overhead 1.80 Total unit cost $4.90 For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 389,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.) Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials $ Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost $ Hide 2. Prepare a cost of goods sold budget for Play-Disc for the year. PlayDisc Cost of Goods Sold Budget For the Year $ Total manufacturing cost $ Cost of goods sold $ 3. What if the beginning inventory of finished goods was $92,200 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would to $ - Select yourStep by Step Solution
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