needs help with Cornerstone 8.6 and 8.7 nearest cent). CTIVE ornerstone Exercise

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needs help with Cornerstone 8.6 and 8.7

nearest cent). CTIVE ornerstone Exercise 8.6 manufacturing costs: Ending Finished Goods Inventory Budget ONE 8.6 Play-Dise Frisbee-ty se makes Frisbee type plastic diss. Each 12-inch diameter plastic dise has the Direct materials Direct labor Variable overhead Fixed overhead S1.67 0.56 0.72 1.80 $4.75 Total unit cost For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 28s of them. Budgeted beginning inventory in units is 16,000 with unit cost of S4.75. (There 8sx ere are sn beginning or ending inventories of work in process.) Required 1. Prepare an ending finished goods inventory budget for Play Disc for the coming year 2. What if sales increased to 290,000 discs? How would that affect the ending finished good i In- ventory budget? Calculate the value of budgeted ending finished goods inventory E Cornerstone Exercise 8.7 Cost of Goods Sold Budget E 8.7 2 Refer to Cornerstone Exercise 8.6. Required 1. Calculate the total budgeted cost of units produced for Play-Dise for the coming year. Shom 2. Prepare a cost of goods sold budget for Play-Dise for the year. 3·What i/ the beginning inventory of finished goods was $75,200 (for 16,000 units? How would the cost of direct materials, direct labor, and overhead. that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)

Explanation / Answer

1.

2.

1. cost of units produced:

2. Cost of goods sold:

3.

Particulars Units Beginning inventory              16,000 Add: Production           300,000 Less: Sales         (285,000) Ending inventory              31,000 Per unit cost 4.75 Total value 147250

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