Cost of Goods Sold Budget
The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. 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 September | $41,130 | $8,640 | $160,410 | $210,180 | ||||
Estimated inventory, September 1 | 2,700 | 6,480 | 10,800 | 19,980 | ||||
Desired inventory, September 30 | 2,830 | 2,580 | 6,790 | 12,200 | ||||
Direct labor cost: | Kiln Department | Decorating Department | Total | |||||
Total direct labor cost budgeted for September | $54,560 | $158,220 | $212,780 | |||||
Finished goods inventories: | Dish | Bowl | Figurine | Total | ||||
Estimated inventory, September 1 | $5,870 | $3,350 | $2,760 | $11,980 | ||||
Desired inventory, September 30 | 3,760 | 4,640 | 4,400 | 12,800 | ||||
Work in process inventories: | ||||||||
Estimated inventory, September 1 | $3,580 | |||||||
Desired inventory, September 30 | 2,000 | |||||||
Budgeted factory overhead costs for September: | ||||||||
Indirect factory wages | $77,900 | |||||||
Depreciation of plant and equipment | 14,130 | |||||||
Power and light | 4,940 | |||||||
Indirect materials | 3,180 | |||||||
Total | 100,150 |
Use the preceding information to prepare a cost of goods sold budget for September. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
MingWare Ceramics Inc. | |||
Cost of Goods Sold Budget | |||
For the Month Ending September 30 | |||
$ | |||
$ | |||
Direct materials: | |||
$ | |||
$ | |||
$ | |||
Direct labor | |||
$ | |||
Work in process inventory, September 30 | |||
$ | |||
$ |
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