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	$1.70
Direct labor	0.50
Variable overhead	0.70
Fixed overhead	1.90
Total unit cost	$4.80

For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 284,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.80. (There are no beginning or ending inventories of work in process.)

Required:

Question Content Area

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	$fill in the blank 9e275ffc0035059_1
Budgeted direct labor	fill in the blank 9e275ffc0035059_2
Budgeted overhead	fill in the blank 9e275ffc0035059_3
Total budgeted manufacturing cost	$fill in the blank 9e275ffc0035059_4

Question Content Area

2. Prepare a cost of goods sold budget for Play-Disc for the year.

Play-Disc Cost of Goods Sold Budget For the Year

Beginning inventoryCost of goods soldDirect materialsEnding inventoryFinished goods	$- Select -
Beginning inventoryCost of goods soldDirect laborEnding inventoryFinished goods	- Select -
Beginning inventory, finished goodsCost of goods finishedCost of goods soldEnding inventory, finished goodsOverhead	- Select -
Total manufacturing cost	$fill in the blank 4c2b8c0a0fcf00f_7
Add: Beginning inventory, finished goodsAdd: Cost of goods manufacturedAdd: Cost of goods soldLess: Beginning inventory, finished goods	- Select -
Add: Cost of goods manufacturedLess: Beginning inventory, finished goodsLess: Cost of goods soldLess: Ending inventory, finished goods	- Select -
Cost of goods sold	$fill in the blank 4c2b8c0a0fcf00f_12

Question Content Area

3. What if the beginning inventory of finished goods was $95,100 (for 20,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would

increasedecrease

to $fill in the blank 0dec76025f8e05c_2.