Cost of Goods Sold Budget

The controller of Dross Ceramics Inc. is preparing a cost of goods sold budget for April. The controller assembled the following information for the cost of goods sold budget:

Direct materials: Enamel Paint Porcelain Total

Total direct materials purchases budgeted for April $$17,500$ $$3,000$ $$70,000$ $$90,500$

Estimated inventory, April $11,5003754,6256,500$

Desired inventory, April $301,6005005,4007,500$

Direct labor cost: Kiln Department Decorating Department Total

Total direct labor cost budgeted for April $$19,000$ $$81,000$ $$100,000$

Budgeted factory overhead costs for April:

Indirect factory wages $$35,750$

Depreciation of plant and equipment $9,500$

Power and light $6,150$

Indirect materials $2,100$

Total $$53,500$

Work$-$in$-$process inventories:

Estimated inventory, April $1$ $$5,700$

Desired inventory, April $304,750$

Finished goods inventories: Dish Bowl Figurine Total

Estimated inventory, April $1$ $$2,250$ $$1,500$ $$1,250$ $$5,000$

Desired inventory, April $302,0003756253,000$

Use the preceding information to prepare a cost of goods sold budget for April.

DROSS CERAMICS INC.

Cost of Goods Sold Budget

For the Month Ending April $30$

Line Item Description Amount Amount Amount

Finished goods inventory, April $1$ $Finished goods inventory, April $1$

$5,000$

Work$-$in$-$process inventory, April $1$

$Work$-$in$-$process inventory, April $1$

$5,700$

Direct materials:

Direct materials inventory, April $1$

$Direct materials inventory, April $1$

$6,500$

Direct materials purchases

Direct materials purchases

$90,500$

Cost of direct materials available for use $Cost of direct materials available for use

$97,000$

Less: Direct materials inventory, April $30$

Less: Direct materials inventory, April $30$

$7,500$

Cost of direct materials placed in production $Cost of direct materials placed in production

$89,500$

Direct labor

Direct labor

$100,000$

Factory overhead

Factory overhead

$53,500$

Total manufacturing costs Total manufacturing costs

$243,000$

Total work in process during the period $Total work in process during the period

$10,450$

Less: Work$-$in$-$process inventory, April $30$

Less: Work$-$in$-$process inventory, April $30$

$4,750$

Cost of goods manufactured Cost of goods manufactured

Cost of finished goods available for sale $Cost of finished goods available for sale

Less: Finished goods inventory, April $30$

Less: Finished goods inventory, April $30$

$3,000$

Cost of goods sold $Cost of goods sold