1. Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $34,000 and $25,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $44,000, $33,000 and $19,000 respectively. Direct material purchases were $575,000. Direct labor was $206,000 for the year. Factory overhead was $147,000.

   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	$
   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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