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Ply-Disc makes Frisbee-type plastic discs. Each 12 inch diameter plastic disc has the following manufacturing costs Direct material $1.80 Direct labor 0.60 Variable overhead 0.75
Ply-Disc makes Frisbee-type plastic discs. Each 12 inch diameter plastic disc has the following manufacturing costs
Direct material $1.80
Direct labor 0.60
Variable overhead 0.75
Fixed overhead 1.90
Total unit cost 5.50
For the coming year, Play Disc expects to make 360,000 plastic discs, an to sell 342,000 of them. Budgeted beginning inventory is units is 17,000 with unit cost of $5.05. (there are no beginning or ending inventories of work in process.)
1.prepare an ending finished goods inventory budget for plat disc for the coming year. if required, round your answer to the nearest cent.
2. what if sales increased to 373,000 discis? how would that effect finished goods inventory budget ? calculate the value budgeted ending finished goods inventory.
finished goods inventory has increased or decrease to $___
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