Question

Cost of Goods Sold Budget

The controller of Pueblo Ceramics Inc. wishes to prepare a cost of goods sold budget for April. The controller assembled the following information for constructing the cost of goods sold budget:

Direct materials:	Enamel		Paint		Porcelain		Total
Total direct materials purchases budgeted for April	$30,750		$6,460		$119,930		$157,140
Estimated inventory, April 1	1,170		2,810		4,680		8,660
Desired inventory, April 30	2,930		2,670		7,030		12,630
Direct labor cost:	Kiln Department		Decorating Department				Total
Total direct labor cost budgeted for April	$46,020		$133,460				$179,480
Budgeted factory overhead costs for April:
Indirect factory wages	$78,000
Depreciation of plant and equipment	11,030
Power and light	5,070
Indirect materials	3,020
Total	$97,120
Work in process inventories:
Estimated inventory, April 1	$3,480
Desired inventory, April 30	1,940
Finished goods inventories:	Dish		Bowl		Figurine		Total
Estimated inventory, April 1	$5,710		$3,250		$2,680		$11,640
Desired inventory, April 30	3,650		4,510		4,280		12,440

Use the preceding information to prepare a cost of goods sold budget for April.

PUEBLO CERAMICS INC.
Cost of Goods Sold Budget
For the Month Ending April 30
Finished goods inventory, April 1			$
Work in process inventory, April 1		$
Direct materials:
Direct materials inventory, April 1	$
Direct materials purchases
Cost of direct materials available for use	$
Less: Direct materials inventory, April 30
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, April 30
Cost of goods manufactured
Cost of finished goods available for sale			$
Less: Finished goods inventory, April 30
Cost of goods sold			$

Answer 1