Question
Cost of goods sold budget Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required
Cost of goods sold budget
Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for January. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during January. The candle wax costs $1.24 per pound.
Prepare a cost of goods sold budget for Pasadena Candle Inc. using the information above. Assume the estimated inventories on January 1 for finished goods and work in process were $200,000 and $41,250, respectively and direct materials wax inventory of 16,000 pounds. Also assume the desired inventories on January 31 for finished goods and work in process were $120,000 and $28,500, respectively and direct materials wax inventory of 12,500 pounds. Factory overhead was budgeted at $300,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Cost of finished goods available for saleDirect laborFactory overheadFinished goods inventory, January 1Finished goods inventory, January 31Finished goods inventory, January 1 | $Finished goods inventory, January 1 | ||
| Cost of finished goods available for saleCost of goods manufacturedFactory overheadWork in process inventory, January 31Work in process inventory, January 1Work in process inventory, January 1 | $Work in process inventory, January 1 | ||
| Direct materials: | |||
| Cost of goods manufacturedDirect materials inventory, January 1Factory overheadFinished goods inventory, January 31Total work in process during periodWork in process inventory, January 1Direct materials inventory, January 1 | |||
| Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, January 31Work in process inventory, January 31Finished goods inventory, January 31 | Finished goods inventory, January 31 | ||
| Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costsCost of direct materials available for use | $Cost of direct materials available for use | ||
| Direct laborDirect materials inventory, January 31Factory overheadFinished goods inventory, January 1Total work in process during periodDirect materials inventory, January 31 | Direct materials inventory, January 31 | ||
| Cost of direct materials placed in production | $fill in the blank 13 | ||
| Cost of goods soldDirect laborDirect materials purchasesFinished goods inventory, January 1Work in process inventory, January 1Work in process inventory, January 31Finished goods inventory, January 1 | Finished goods inventory, January 1 | ||
| Cost of goods manaufacturedDirect materials inventory, January 31Direct materials inventory, January 1Factory overheadWork in process inventory, January 31Direct materials inventory, January 31 | Direct materials inventory, January 31 | ||
| Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costsCost of goods sold | Cost of goods sold | ||
| Total work in process during period | $fill in the blank 20 | ||
| Direct laborDirect materials inventory, January 31Factory overheadFinished goods inventory, January 1Work in process inventory, January 31Factory overhead | Factory overhead | ||
| Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costsCost of goods manufactured | Cost of goods manufactured | ||
| Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costsCost of finished goods available for sale | $Cost of finished goods available for sale | ||
| Direct laborDirect materials inventory, January 31Factory overheadFinished goods inventory, January 31Work in process inventory, January 31Factory overhead | Factory overhead | ||
| Cost of direct materials available for useCost of finished goods available for saleCost of goods manufacturedCost of goods soldTotal manufacturing costsCost of finished goods available for sale | $Cost of finished goods available for sale |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Frank Woods Business Accounting Volume 1
Authors: Alan Sangster, Frank Wood
13th Edition
9781292084664
