Preparing a Cost of Goods Sold Budget

Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $20 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.50 per direct labor hour. Andrews Company expects to produce 20,000 chairs next year and expects to have 770 chairs in ending inventory. There is no beginning inventory of chairs.

Required:

Prepare a cost of goods sold budget for Andrews Company. Round your answers to the nearest dollar.

Andrews Company
Cost of Goods Sold Budget
For the Coming Year
Direct materials	$
Direct labor
Variable overhead
Fixed overhead
Total manufacturing cost	$
Less: Ending inventory
Cost of goods sold	$