he estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $34,000 and $27,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $46,000, $38,000 and $20,000 respectively. Direct material purchases were $565,000. Direct labor was $247,000 for the year. Factory overhead was $154,000.

Prepare a cost of goods sold budget for Sleep Tight, Inc.

Sleep Tight, Inc.
Cost of Goods Sold Budget
For the Year Ending December 31
Finished goods inventory, January 1			$
Work in process inventory, January 1		$
Direct materials, January 1	$
Direct materials purchases
Cost of direct materials available for sale	$
Less direct materials inventory, December 31
Cost of direct materials placed in production	$
Direct labor
Factory overhead
Total manufacturing costs
Total work in process during the period		$
Less work in process inventory, December 31
Cost of goods manufactured
Cost of finished goods available for sale			$
Less finished goods inventory, December 31
Cost of goods sold