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

Direct materials	$1.67
Direct labor	0.56
Variable overhead	0.72
Fixed overhead	1.80
Total unit cost	$4.75

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:

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1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead.

Budgeted direct materials	$fill in the blank c55d970b3fcfffb_1
Budgeted direct labor	fill in the blank c55d970b3fcfffb_2
Budgeted overhead	fill in the blank c55d970b3fcfffb_3
Total budgeted manufacturing cost	$fill in the blank c55d970b3fcfffb_4

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The Cost of Goods Sold Budget is used in preparing the budgeted income statement. This budget shows the budgeted manufacturing costs used to make the units that are expected to be sold.

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2. Prepare a cost of goods sold budget for Play-Disc for the year.

Beginning inventoryCost of goods soldDirect materialsEnding inventoryFinished goods	$- Select -
Beginning inventoryCost of goods soldDirect laborEnding inventoryFinished goods	- Select -
Beginning inventory, finished goodsCost of goods finishedCost of goods soldEnding inventory, finished goodsOverhead	- Select -
Total manufacturing cost	$fill in the blank 13f6bbfa003e045_7
Add: Beginning inventory, finished goodsAdd: Cost of goods manufacturedAdd: Cost of goods soldLess: Beginning inventory, finished goodsLess: Ending inventory, finished goods	- Select -
Add: Beginning inventory, finished goodsAdd: Cost of goods manufacturedLess: Beginning inventory, finished goodsLess: Cost of goods soldLess: Ending inventory, finished goods	- Select -
Cost of goods sold	$fill in the blank 13f6bbfa003e045_12

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To calculate ending inventory: (Beginning + Produced - Sold) x Total Unit cost.

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3. What if the beginning inventory of finished goods was $75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would

increasedecrease

to $fill in the blank eeda1103601ffa4_2.