Question
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
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 | ||||||
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