Cost of Goods Sold Budget

Harbour Inc. budgeted production of 258,000 personal journals in 20Y6. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 25,100 square yards. The desired December 31, 20Y6, paper inventory is 17,000 square yards. Paper costs $0.60 per square yard.

Each journal requires assembly. Assume that 6 minutes are required to assemble each journal. Assembly labor costs $16.50 per hour.

Prepare a cost of goods sold budget for Harbour Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $49,800 and $50,900, respectively. Factory overhead was budgeted at $197,200. Round your interim calculations to nearest cent, if required.

Harbour Inc.
Cost of Goods Sold Budget
For the Year Ending December 31, 20Y6
Finished goods inventory, January 1, 20Y6			$fill in the blank 2
Work in process inventory, January 1, 20Y6		$fill in the blank 4
Direct materials:
Direct materials inventory, January 1, 20Y6	$fill in the blank 6
Direct materials purchases	fill in the blank 8
Cost of direct materials available for use	$fill in the blank 10
Less direct materials inventory, December 31, 20Y6	fill in the blank 12
Cost of direct materials placed in production	$fill in the blank 13
Direct labor	fill in the blank 15
Factory overhead	fill in the blank 17
Total manufacturing costs		fill in the blank 19
Total work in process during period		$fill in the blank 20
Less work in process inventory, December 31, 20Y6		fill in the blank 22
Cost of goods manufactured			fill in the blank 24
Cost of finished goods available for sale			$fill in the blank 26
Less finished goods inventory, December 31, 20Y6			fill in the blank 28
Cost of goods sold			$fill in the blank 30