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

Question

Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $33,000 and $27,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $41,000, $37,000 and $19,000 respectively. Direct material purchases were $565,000. Direct labor was $235,000 for the year. Factory overhead was $141,000. Prepare a cost of goods sold budget for Sleep Tight, Inc. Sleep Tight, Inc. Cost of Goods Sold Budget For the Year Ending December 31 Finished goods inventory, January 1 Work in process inventory, January 1 Direct materials, January 1 Direct materials purchases Cost of direct materials available for sale Less direct materials inventory, December 31 Cost of direct materials placed in production Direct labor Factory overhead Total manufacturing costs Total work in process during the period Less work in process inventory, December 31 Cost of goods manufactured Cost of finished goods available for sale Less finished goods inventory, December 31 Cost of goods sold

Explanation / Answer

Finished goods inventory, January 1 37000 Work in process inventory, January 1 33000 Direct materials inventory, January 1 27000 Add : Direct materials purchases 565000 Cost of direct materials available for use 592000 Less : Direct materials inventory, December 31 19000 Cost of direct materials placed in production 573000 Direct labor 235000 Factory overhead 141000 Total manufacturing costs 949000 Total work in process during the period 982000 Less : Work in process inventory, December 31 37000 Costs of good manufactured 945000 Cost of finished goods available for sale 982000 Less :Finished goods inventory, December 31 41000 Costs of goods sold 941000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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