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	0.60
Variable overhead	0.85
Fixed overhead	1.95
Total unit cost	$5.10

For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 289,000 of them. Budgeted beginning inventory in units is 18,000 with unit cost of $5.10. (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	$fill in the blank f810aa098fbafd0_1
Budgeted direct labor	fill in the blank f810aa098fbafd0_2
Budgeted overhead	fill in the blank f810aa098fbafd0_3
Total budgeted manufacturing cost	$fill in the blank f810aa098fbafd0_4

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

Play-Disc
Cost of Goods Sold Budget
For the Year
	$fill in the blank 490a0b02501bfba_2
	fill in the blank 490a0b02501bfba_4
	fill in the blank 490a0b02501bfba_6
Total manufacturing cost	$fill in the blank 490a0b02501bfba_7
	fill in the blank 490a0b02501bfba_9
	fill in the blank 490a0b02501bfba_11
Cost of goods sold	$fill in the blank 490a0b02501bfba_12

3. What if the beginning inventory of finished goods was $91,200 (for 18,000 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 $fill in the blank 4e19c504c024070_2.