Use your results from Short Exercises S22- 3 through S22- 7 to prepare the cost of goods sold budget for Yoder for January and February. The beginning balance in Finished Goods Inventory is 200 luggage sets at $ 111 each for a total of $ 22,200. Yoder uses FIFO inventory costing method.

S22- 7

Yoder budgets $ 5 per luggage set for variable manufacturing overhead; $ 1,500 per month for depreciation; and $ 16,265 per month for other fixed manufacturing overhead costs. Use this information and the production budget prepared in Short Exercise S22- 4 to prepare Yoder’s manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.