Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $33,000, and $27,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $35,000, and $21,000, respectively. Direct material purchases were $575,000, direct labor was $212,000 for the year, and factory overhead was $156,000. Prepare a cost of goods sold budget for Sleep Tight, Inc.

Prepare an income statement (through Gross Profit Actual) for the year ended December 31, through the gross profit for Baxter Company using the following information. Baxter Company sold 8,600 units at $125 per unit. Normal production is 9,000 units. (Do not round fixed overhead rate calculation when determining fixed factory overhead volume variance.)

Standard: 5 yds per unit at $6.30 per yd Actual yards used: 43,240 yds at $6.25 per yd

Standard: 2.25 hours per unit at $15.00 Actual hours worked: 19,100 at $14.90 per hour

Standard: variable overhead $1.05 per unit

Standard: fixed overhead $211,500

(budgeted and actual amount) Actual total factory overhead: $235,500