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OBUECTIVE Conerstone Exercise 8.6 Ending Finished Goods Inventory Budget CORNERSTONE 8.6 Play-Disc makes Frisbee-type plastic diss. Each 12-inch diameter plastic disc has the following Direct
OBUECTIVE Conerstone Exercise 8.6 Ending Finished Goods Inventory Budget CORNERSTONE 8.6 Play-Disc makes Frisbee-type plastic diss. Each 12-inch diameter plastic disc has the following Direct materials Direct labor Variable overhead Fixed overhead $1.67 0.56 0.72 1.80 S4.75 Total unit cost For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of $4.75. (There are no beginning or ending inventories of work in process.) Required: Prepare an ending finished goods inventory budget for Play-Dise for the coming year. What ifsales increased to 290,000 discs? How would that affect the ending finished goods in- ventory budget? Calculate the value of budgeted ending finished goods inventory. 1. 2
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