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	0.60
Variable overhead	0.75
Fixed overhead	1.90
Total unit cost	$5.00

For the coming year, Play-Disc expects to make 320,000 plastic discs, and to sell 300,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $5.00. (There are no beginning or ending inventories of work in process.)

Required:

Question Content Area

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:
Budgeted fixed overhead OR Budgeted variable overhead OR Direct materials OR Overhead OR Total cost per unit
Budgeted fixed overhead OR Budgeted variable overhead OR Direct labor OR Overhead OR Total cost per unit
Overhead:
Budgeted variable overhead OR Direct labor OR Direct materials OR Overhead OR Total cost per unit
Budgeted fixed overhead OR Direct labor OR Direct materials OR Finished goods OR Total cost per unit
Total cost per unit
Total ending inventory cost

Question Content Area

2. What if sales increased to 325,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory. Finished goods inventory has

increased OR decreased to $