Cost of Goods Sold Budget Harbour Inc. budgeted production of 258,000 personal journals in 2016. Paper is required to produce a journal. Assume 5 square yards of paper are required for each journal. The estimated January 1, 2046, paper inventory is 25,100 square yards. The desired December 31, 2016, 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, 2016, for finished goods and work in process were $41,100 and $35,700, respectively. Also assume the desired inventories on December 31, 2046, 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, 2016 Finished goods inventory, January 1, 2016 41,100 Work in process inventory, January 1, 2016 35,700 Direct materials: Direct materials inventory, January 1, 2016 15,060 Direct materials purchases 774,000 x $ 789,060 x Cost of direct materials available for use Less direct materials inventory, December 31, 2016 10,200 $ 778,860 x Cost of direct materials placed in production Direct labor 425,700 Factory overhead 197,200 Total manufacturing costs 1,401,760 X Total work in process during period Less work in process inventory, December 31, 2016 1,437,460 X 50,900 Cost of goods manufactured 1,386,560 x $1,427,660 X Cost of finished goods available for sale Less finished goods inventory, December 31, 2016 49,800 Cost of goods sold 1,377,860 x