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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

  1. 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 0.50
    Variable overhead 0.75
    Fixed overhead 1.95
    Total unit cost $4.95

    For the coming year, Play-Disc expects to make 350,000 plastic discs, and to sell 337,000 of them. Budgeted beginning inventory in units is 16,000 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:
    $fill in the blank c395d1fdb06b01c_2
    fill in the blank c395d1fdb06b01c_4
    Overhead:
    fill in the blank c395d1fdb06b01c_6
    fill in the blank c395d1fdb06b01c_8
    Total cost per unit $fill in the blank c395d1fdb06b01c_9
    Total ending inventory cost $fill in the blank c395d1fdb06b01c_10

    2. What if sales increased to 345,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory. Finished goods inventory has to $fill in the blank 58c0f8ffbfe8011_2

Check My Work1 more Check My Work uses remaining.

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