Sleep Tight manufactures comforters. The estimated inventories on January 1 for

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Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $31,000, and $29,000, respectively. The desired inventories on December 31 or finished goods, work n process, and mate als were s44 000 6,000, and 20 000 res ec e'. Direct mate a purchases were 55 ·00 direct abor as the year, and factory overhead was $149,000. 1000 or 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

Explanation / Answer

Sleep Tight, Inc.

Cost of Goods Sold Budget

For the year ending December 31 (Amounts in $)

Finished goods inventory, January 1 37,000 Work in process inventory, January 1 31,000 Direct materials, January 1 29,000 Add: Direct materials purchases 560,000 Cost of direct materials available for sale 589,000 Less: Direct materials inventory, December 31 (20,000) Cost of direct materials placed in production (A) 569,000 Direct labor (B) 201,000 Factory overhead (C) 149,000 Total manufacturing costs (A+B+C) 919,000 Total work in process during the period 950,000 Less: Work in process inventory, December 31 (36,000) Cost of goods manufactured 914,000 Cost of finished goods available for sale 951,000 Less: Finished goods inventory, December 31 (44,000) Cost of goods sold 907,000

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