1. Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $32,000 and $25,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $44,000, $36,000 and $20,000 respectively. Direct material purchases were $580,000. Direct labor was $221,000 for the year. Factory overhead was $158,000.

   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			$