Warmfeet manufactures comforters. Assume the estimated inventories on January 1, 2012, for finished goods, work in process, and materials were $38,000, $32,000 and $25,000 respectively. Also assume the desired inventories on December 31, 2012, for finished goods, work in process, and materials were $45,000, $37,000 and $22,000 respectively. Direct material purchases were $555,000. Direct labor was $223,000 for the year. Factory overhead was $153,000.

Warmfeet,Inc Cost of Good Sold Budget For the Year Ending December 31,2012 Finished goods inventory, January 1, 2012 Work in process inventory, January 1, 2012 Direct materials inventory, January 1, 2012 Direct materials purchases Cost of direct materials available for sale Less direct materials inventory December 31, 2012 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, 2012 Costs of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31, 2012 Costs of goods sold