Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process,
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Question:
Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $30,000 and $29,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $46,000, $35,000 and $21,000 respectively. Direct materials purchases were $580,000, direct labor was $242,000 for the year, and factory overhead was $150,000.
Prepare a cost of goods sold budget for Sleep Tight, Inc.
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 use | |||
Less 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 | |||
Less work in process inventory, December 31 | |||
Cost of goods manufactured | |||
Cost of finished goods available for sale | |||
Less finished goods inventory, December 31 | |||
Cost of goods sold |
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