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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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