Sleep Tight, Inc. manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $38,000, $32,000, and $28,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $34,000, and $22,000, respectively. Direct materials purchases were $570,000, direct labor was $220,000 for the year, and factory overhead was $145,000.

Required:

Prepare a cost of goods sold budget for Sleep Tight, Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. Be sure to complete the statement heading.

Labels

For the Year Ending December 31

Direct materials

Amount Descriptions

Cost of direct materials placed in production

Cost of finished goods available for sale

Cost of direct materials available for use

Costs of good manufactured

Costs of goods sold

Direct labor

Direct materials inventory, December 31

Direct materials inventory, January 1

Direct materials purchases

Factory overhead

Finished goods inventory, December 31

Finished goods inventory, January 1

Total manufacturing costs

Total work in process during the period

Work in process inventory, December 31

Work in process inventory, January 1

Cost of Goods Sold Budget Sleep Tight, Inc. Cost of Goods Sold Budget (Label) 1 2 3 (Label) 4 5 6 7 8 10 11 12 13 14 15 16 17