Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $34,000 and $28,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $46,000, $38,000 and $23,000 respectively. Direct material purchases were $570,000. Direct labor was $202,000 for the year. Factory overhead was $156,000.

Sleep Tight, Inc. Cost of Goods Sold Budget ding December 31 Finished goods inventory, January 1 Work in process inventory, January1 Direct materials, January 1 Direct materials purchases Cost of direct materials available for sale Less direct materials inventory, December 31 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Less work in process inventory, December 31 Cost of goods manufactured Less finished goods inventory, December 31 Cost of goods sold