Question

Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $34,000, and $27,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $33,000, and $20,000, respectively. Direct materials purchases were $555,000, direct labor was $248,000 for the year, and factory overhead was $143,000. Prepare a cost of goods sold budget for Sleep Tight, Inc.

Answer 1

Answer:

$950,000

Explanation:

Particular                                     Amount    Amount

Finish Goods                                                $39,000

W.I.P Goods                                  $34,000

Add: material                                $27,000              

material purchase                        $555,000

Direct labor                                   $248,000

Factory Overhead                        $143,000

                                                      $1,007,000

Less: material                               $20,000

W.I.P Goods at end                      $33,000

Finish Goods                                $43,000                

                                                                      $911,000

Total cost of goods sold                               $950,000