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Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method. The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. Begin by
Thunder Creek Company uses the first-in, first-out (FIFO) inventory costing method. The Beginning Finished Goods Inventory is $86,400 consisting of 3,600 units. Begin by calculating the projected cost to produce each unit in 2018 based on projected sales. (Hint: In "Cost per unit" table, cell references come from Direct Materials, Direct Labor, and Manufacturing Overhead budgets.) Use 'ROUND' function to round the fixed manufacturing overhead cost per unit to two decimal places. Prepare a Cost of Goods Sold Budget. (Hint: Units per month calculated using cell references to both sales budget and production budget.) Direct material cost per unit Direct labor cost per unit Manufacturing overhead cost per unit Total projected manufacturing cost per unit Cost per unit $ 7.95 10.00 9.09 $ 27.04 Budget #6: Cost of Goods Sold Budget Beginning Finished Goods Inventory, 3,600 units. Units produced and sold in 2018 Cost per unit Units per month Total cost of units produced and sold in 2018 Total budgeted cost of goods sold $ Jan 86,400.00 27.04 14,400 389,376 $ 475,776 $ 2018 Feb Mar Q1 Total $ 86,400.00 27.04 24,000 648,960 27.04 30,000 811,200 648,960 $ 811,200 $ 1,935,936
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