Day Timer Publishers Inc. budgeted production of 201,500 schedule planners in 2010. Paper is required to produce a planner. Assume 80 square feet of paper are required for each planner. The estimated January 1, 2010, paper inventory is 250,000 square feet. The desired December 31, 2010, paper inventory is 210,000 square feet. Paper costs $0.10 per square foot.

Each planner requires assembly. Assume that 12 minutes are required to assemble each planner. Assembly labor is $14 per hour.

Prepare a cost of goods sold budget for Day Timer Publishers Inc. using the information above.

Assume the estimated inventories on January 1, 2010, for finished goods and work in process were $39,000 and $18,000, respectively. Also assume the desired inventories on December 31, 2010, for finished goods and work in process were $43,000 and $15,000, respectively. Factory overhead was budgeted at $240,000. Enter all amounts as positive numbers.

Cost of Goods Sold Budget
SelectFactory overheadDirect laborFinished goods inventory, January 1, 2010Cost of direct materials available for useTotal work in process during periodItem 1
SelectCost of direct materials available for useFactory overheadDirect laborWork in process inventory, January 1, 2010Total work in process during periodItem 3
Direct materials:
SelectDirect materials inventory, December 31, 2010Direct laborDirect materials inventory, January 1, 2010Total work in process during periodCost of direct materials available for useItem 5
SelectFinished goods inventory, December 31, 2010Direct laborTotal work in process during periodCost of direct materials available for useDirect materials purchasesItem 7
Cost of direct materials available for use
SelectLess: Total work in process during periodLess: Factory overheadLess: Direct materials inventory, December 31, 2010Less: Direct laborLess: Finished goods inventory, January 1, 2010Item 10
SelectFactory overheadDirect laborFinished goods inventory, January 1, 2010Cost of direct materials placed in productionFinished goods inventory, December 31, 2010Item 12
SelectCost of goods soldWork in process inventory, December 31, 2010Work in process inventory, January 1, 2010Direct laborTotal work in process during periodItem 14
SelectDirect materials inventory, December 31, 2010Work in process inventory, December 31, 2010Direct materials inventory, January 1, 2010Total work in process during periodFactory overheadItem 16
Total manufacturing costs
Total work in process during the period
SelectLess: Work in process inventory, December 31, 2010Less: Factory overheadLess: Direct materials inventory, December 31, 2010Less: Direct laborLess: Finished goods inventory, January 1, 2010Item 20
Cost of goods manufactured
SelectFactory overheadDirect laborCost of direct materials available for useCost of finished goods available for saleWork in process inventory, January 1, 2010Item 23
SelectLess: Direct materials inventory, December 31, 2010Less: Work in process inventory, December 31, 2010Less: Factory overheadLess: Finished goods inventory, December 31, 2010Less: Direct laborItem 25
Cost of goods sold