?Cost of Goods Sold Budget LifeTyme Publishers Inc. budgeted production of 191,9

Question

?Cost of Goods Sold Budget LifeTyme Publishers Inc. budgeted production of 191,900 diaries in 2014. Paper is required to produce a diary. Assume seven square yards of paper are required for each diary. The estimated January 1, 2014, paper inventory is 29,100 square yards. The desired December 31, 2014, paper inventory is 32,900 square yards. Paper costs $0.80 per square yard. Each diary requires assembly. Assume that nine minutes are required to assemble each diary. Assembly labor costs $16.00 per hour.

Prepare a cost of goods sold budget for LifeTyme Publishers Inc., using the information above. Assume the estimated inventories on January 1, 2014, for finished goods and work in process were $28,000 and $17,000, respectively. Also assume the desired inventories on December 31, 2014, for finished goods and work in process were $23,700 and $19,500, respectively. Factory overhead was budgeted at $205,800. Round your interim calculations to nearest cent, if required. LifeTyme Publishers Inc. Cost of Goods Sold Budget January 1, 2014 Finished goods invent 28,000 Work in process inver 17,000 Direct materials Direct materials inve 23,280 Direct materials purc Cost of direct materi Less direct materials 26,320 $1,074,640 460560 Cost of direct materials placed in production Direct labor Factory overhead ' 205800 Total manufacturing 1,741,000 Total work in process during period Less work in process i Cost of goods manufa Cost of finished good! Less finished goods in- Cost of goods sold 1758000 19500 1,738,500 23700 $1,742,800

Explanation / Answer

Lifetym Publishers Inc.

Cost of goods sold budget

January 1,2014

Opening Fished goods inventory $28000 Opening W-I-P $17000 Direct Material Beggining Inventory 23280 Add: Purchased 1077680 Cost of direct material available 1100960 Less: Ending Inventory 26320 Cost of direct material placed into production 1074640 Direct labour 460560 Factory overhead 205800 Total manufacturing cost 1741000 Total WIP during period 1758000 Less: Closin WIP 19500 Cost of goods manufactured 1738500 Cost of finished goods 1766500 Less: Finished goods 23700 Cost of goods sold 1742800

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.