/2 l Online teacixCengage Learning mentMain.do?invokera ssionLocator-assignment
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/2 l Online teacixCengage Learning mentMain.do?invokera ssionLocator-assignment alse eBook Show Me How Calculator Cost of Goods Sold Budget Daybook Inc. budgeted production of 403,500 personal jounals in 20Y6. journal. The estimated January 1, 20Y6, paper inventory is 40,400 square yards. The desired December 31 per square yard. Paper is required to produce a journal. Assume six square yards of paper are required for each . 0Y6, paper inventory is 38,900 square yards. Paper costs $0.40 , 2 Each journal requires assembly. Assume that eight minutes are required to assemble each journal, Assembly labor costs $13,.00 per hour Prepare a cost of goods sold budget for Daybook Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for ninished goods and work in process were $28,000 and $16,500, respectively. Also assume the desired inventories on December 31, 20Y6 for frished goods and work in process ere?a ooo and $14,300, respectively. Factory overhead was budgeted at $214,600. Round your interim calculations to nearest cent, id required DAYBOOK ING Cost of Goods Sold Budget Finished goods inventory, January 1, 20Y6 KWork in process Inventory,January 1,20YS Direct materials: Direct materials inventory, January 1, 20Y6 Direct materials purchases Cost of direct materials available for use 16,160 1560 Less direct materials inventory, December 31, 20Y6 404,100 Cost of direct materials placed in production Direct labor 214.530 Factory overhead Total work in process during period Less work in process inventory, December 31, 20Y6 Previous Check My Work 2 more Check My Work uses remaning All work savedExplanation / Answer
Direct labor = Budgeted production *[time per unit/ 60 minutes] *rate per hour
= 403500*[8/60]*13
= 699400
Total manufacturing cost =404100+699400+214600=1318100
Total work in process during the period : beginning WIP+total manufacturing cost
= 16500+1318100
= 1334600
less"ending WIP : 14300
Cost of goods manufactured =1334600-14300= 1320300
cost of Finished goods availabele for sale = 1320300+28000 = 134830
less:Finished goods at dec 31 : (30000)
cost of goods sold = 1348300-30000= 131830
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