Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $31,000 and $29,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $34,000 and $21,000 respectively. Direct material purchases were $560,000. Direct labor was $210,000 for the year. Factory overhead was $155,000.

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, 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