Ending Finished Goods Inventory Budget

Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:

Direct materials	$1.75
Direct labor	0.55
Variable overhead	0.70
Fixed overhead	1.95
Total unit cost	$4.95

For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 287,000 of them. Budgeted beginning inventory in units is 18,000 with unit cost of $4.95. (There are no beginning or ending inventories of work in process.)

Required:

1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent.

Play-Disc
Ending Finished Goods Inventory Budget
For the Coming Year
Unit costs:
Direct materials	$fill in the blank d0e1870f3038053_2
Direct labor	fill in the blank d0e1870f3038053_4
Overhead:
Budgeted variable overhead	fill in the blank d0e1870f3038053_6
Budgeted fixed overhead	fill in the blank d0e1870f3038053_8
Total cost per unit	$fill in the blank d0e1870f3038053_9
Total ending inventory cost	$fill in the blank d0e1870f3038053_10

Feedback

The ending finished goods inventory budget supplies information needed for the balance sheet and also serves as an important input for the preparation of the cost of goods sold budget. To prepare this budget, all of the previous budgets except for the Sales budget are used to calculate the unit cost of production.

2. What if sales increased to 296,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory. Finished goods inventory has decreased to $fill in the blank 6be48e045fd7033_2