Question

Calculator Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $36,000, $32,000 and $24,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $42,000, $34,000 and $22,000 respectively. Direct material purchases were $555,000. Direct labor was $219,000 for the year. Factory overhead was $150,000. 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 Rinished goods inventory, January 1 Work in process inventory, January 1 Direct materials: 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 Previous Next Email tnstructor Submit Test for Grading

Answer 1

36,000 Sleep Tight, Inc Cost of goods cold Budget For the year ending Decomber 31. Particulars Horsentes) Aerount C# Amount (5) Finished goods inventary, Tanist Work in process inuentary, Jan 1st 32,000 Direct materials Direct materials, Jan 1st 24,000 Direct material Purchases 565,000 | Cost o direct materials owailable for sale 579000 dans Oineet material invertory becaust (22,000) Contol direct material placed in production 557,000 Direct Labour 219,000 Factory overheads 150,000 Total manufacturing costs 926000 Total work in procees during the period 958,000 dout Work in proces inventors, bec31st (34000) Cost of goods manufactured 924,000 cost of finished goods Swailable for 960,000 Sale og dent Finished goods inventory, December 3 (42,000) Cost of goods sold q18600 Therefore, cost of goods sold -$18,000

Ginen: standard price per unit of yard = $7.5 peryard med in © standard quantity for arbeiab outfeet = noi.ofgassa manufacturing wage of yasds of material pestenit >> 43600 58120chailt 1890chais > standardi quantity 18 Actuale price, consunceds for the output = $7.5spesyard Atual quantity consumede for actual, output + Soochaine. as Pria vosiane = Actual quantity convenido X (standand price,p.u – Actuele price pescuit) → 8500 (75-7.55) 48500x-0.05 Prie variance-> 425(A) b) Quantity Variance = Standard price poux Standardkasd quantity 47.5*(8720 - 8500) - Actuale quantity) → $715 x 220 Grant an> $1650 CH) c) cort Variance =( standard price standasd Lost) (Actual price x Actual tout > (7,5 x 8720)-(7155 X 8500) a -> 65,400 - 64,175 Cort Variance - 1225 (P.