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 0.60 Direct labor Variable overhead 0.75 1.95 Fixed overhead Total unit cost $5.00 For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 384,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $5.00. (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 Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost Feedback Check My Work The Cost of Goods Sold Budget is used in preparing the budgeted Income statement. This budget shows the budgeted manufacturing costs used to make the units that are expected to be sold. 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-Disc Cost of Goods Sold Budget For the Year Direct materials Direct labor Overhead Total manufacturing cost Add: Beginning inventory, finished goods Less: Ending inventory, finished goods Cost of goods sold Feedback Check My Work See Cornerstone 8.7 3. What if the beginning inventory of finished goods was $79,200 (for 16,000 units)? How would that affect the ca (Assume Play-Disc uses the FIFO method.) The cost of goods sold would decrease to $