Prepare a cost of goods sold budget for the Hathaway Manufacturing Co. for the year ended December 31, 2015, from the following estimates.

Inventories of production units:

Work-in- Process Finished Goods

January 1, 2015...................................................................................... $28,500 $19,300

December 31, 2015...................................................................................... 23,700 22,400

Direct materials purchased during the year, $854,000; beginning inventory of direct materials, $31,000; and ending inventory of direct materials, $26,000. Totals from other budgets included:

Direct Labor Cost................................................................................................................ $539,500

Total Factory Overhead Costs........................................................................................... 818,000

Required:

Prepare a cost of goods sold budget for the Hathaway Manufacturing Co. for the year ended December 31, 2015.

	Hathaway Manufacturing Company
	Cost of Goods Sold Budget
	For the Year Ended December 31, 2015
	Finished goods inventory, Jan. 1
	Work in process inventory, Jan. 1
	Direct materials inventory, Jan. 1
	Direct materials purchases
	Direct materials available
	Less direct materials inventory, Jan. 31
	Cost of direct materials used
	Direct labor
	Factory overhead
	Total manufacturing costs
	Total work in process during year
	Less work in process inventory, Dec. 31
	Cost of goods manufactured
	Cost of goods available for sale
	Less finished goods inventory, Dec. 31
	Cost of goods sold