Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $31,000, and $28,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $46,000, $38,000, and $20,000, respectively. Direct materials purchases were $565,000, direct labor was $218,000 for the year, and factory overhead was $154,000.

Prepare a cost of goods sold budget for Sleep Tight, Inc.

Sleep Tight, Inc.

Cost of Goods Sold Budget

For the Year Ending December 31

Finished goods inventory, January 1$

Work in process inventory, January 1$

Direct materials:

Direct materials, January 1$

Direct materials purchases

Cost of direct materials available for sale$

Direct materials inventory, December 31

Cost of direct materials placed in production$

Direct labor

Factory overhead

Total manufacturing costs

Total work in process during the period$

Work in process inventory, December 31

Cost of goods manufactured

Cost of finished goods available for sale$

Finished goods inventory, December 31

Cost of goods sold$