Sleep Tight manufactures comforters. The estimated inventories on January 1 for
ID: 2400080 • Letter: S
Question
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $38,000, $32,000, and $28,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $34,000, and $22,000, respectively. Direct material purchases were $570,000, direct labor was $220,000 for the year, and factory overhead was $145,000.
Required:
Prepare a cost of goods sold budget for Sleep Tight, Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. “Less” or “Plus” will automatically appear if it is required. Be sure to complete the statement heading.
Sleep Tight, Inc.
Cost of Goods Sold Budget
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Labels For the Year Ending December 31 Direct materials Amount Descriptions Cost of direct materials placed in production Cost of finished goods available for sale Cost of direct materials available for use Costs of good manufactured Costs of goods sold Direct labor Direct materials inventory, December 31 Direct materials inventory, January 1 Direct materials purchases Factory overhead Finished goods inventory, December 31 Finished goods inventory, January 1 Total manufacturing costs Total work in process during the period Work in process inventory, December 31 Work in process inventory, January 1Explanation / Answer
Sleep Tight Inc.
Cost Of Goods Sold Budget
Labels
Amount Descriptions
Finished goods inventory, January 1
$ 38,000.00
Add: Costs of good manufactured
$ 939,000.00
Cost of finished goods available for sale
$ 977,000.00
Finished goods inventory, December 31
$ 43,000.00
Cost of Goods Sold
$ 934,000.00
Sleep Tight Inc.
Cost of Goods manufactured Budget
Labels
Amount Descriptions
Amount Descriptions
Direct materials
Direct materials inventory, January 1
$ 28,000.00
Direct materials purchases
$ 570,000.00
Cost of direct materials available for use
$ 598,000.00
Direct materials inventory, December 31
$ 22,000.00
Cost of direct materials placed in production
$ 576,000.00
Direct labor
$ 220,000.00
Factory overhead
$ 145,000.00
Total Manufacturing Cost
$ 941,000.00
Add: Work in process inventory, January 1
$ 32,000.00
Total work in process during the period
$ 973,000.00
Less: Work in process inventory, December 31
$ 34,000.00
Costs of good manufactured
$ 939,000.00
Sleep Tight Inc.
Cost Of Goods Sold Budget
Labels
Amount Descriptions
Finished goods inventory, January 1
$ 38,000.00
Add: Costs of good manufactured
$ 939,000.00
Cost of finished goods available for sale
$ 977,000.00
Finished goods inventory, December 31
$ 43,000.00
Cost of Goods Sold
$ 934,000.00
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