Preparing an ending inventory budget Joshua Hill, Bates & Hill Fabricators production manager, has just completed the companys production budget (see Exercise 5.11) and manufacturing overhead budget (see Exercise 5.19) for the first quarter. He also has received the direct materials purchases budget (see Exercise 5.15) and direct labor budget (see Exercise 5.17).

Required

Prepare Bates & Hills ending inventory and cost of goods sold budget for the first quarter.

Exercise 5.11, Production Budget (units) $ Budgeted unit sales Budgeted ending inv Total units required Beginning Inventory Budgeted Production January 25,000 $ 5,600 30,600 $ 3,200 27,400 $ February 28,000 $ 6,400 34,400 $ 5,600 28,800 $ March 32,000 $ 6,800 38,800 $ 6,400 32,400 $ Quarter 85,000 6,800 91,800 3,200 $ $ 88,600 Exercise 5.15 DM Purchases budget Budgeted production Standard pounds per unit Production needs Budgeted ending inventory Total DM required (lbs.) Beginning Inventory Budgeted purchases Standard cost per pound Budgeted purchases cost January February March $ 27,400.00 $ 28,800.00 $ 32,400.00 $ 6 6 6 164,400 172,800 194,400 17,280 19,440 19,440 181,680 192,240 213,840 15,000 17,280 19,440 166,680 174,960 194,400 $ 1.50 $ 1.50 $ 1.50 $ $ 250,020.00 $ 262,440.00 $ 291,600.00 $ Quarter 88,600.00 6 531,600 19,440 551,040 15,000 536,040 1.50 804,060.00 Exercise 5.17 Direct Labor Budget Budgeted Production Direct labor hours per unit Total hours Direct labor cost per hour Total Direct labor cost January February 27,400 28,800 0.2 0.2 5480 5760 18.00 $ 18.00 $ 98,640.00 $ 103,680.00 $ March 32,400 0.2 6480 18.00 $ 116,640.00 $ Quarter 88,600 0.2 17720 18.00 318,960.00 $ $ Exercise 5.19 Manufacturing OH budget Budget DL Hours Variable OH Rate Total budgeted variable OH Fixed production OH Total budgeted manufacturing OH Budgeted DL hours Total Manufacturing OH rate January 5,480.00 1.75 9,590.00 98,900.00 108,490.00 5,480.00 19.80 $ February 5,760.00 1.75 10,080.00 98,900.00 108,980.00 5,760.00 18.92 $ March 6,480.00 1.75 11,340.00 98,900.00 110,240.00 6,480.00 17.01 $ Quarter 17,720.00 1.75 31,010.00 98,900.00 327,710.00 17,720.00 55.73 $