Cost of Goods Sold Budget The controller of MingWare Ceramics Inc. wishes to pre
ID: 2404364 • Letter: C
Question
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:
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.
Direct materials: Enamel Paint Porcelain Total Total direct materials purchases budgeted for September $37,470 $7,870 $146,130 $191,470 Estimated inventory, September 1 2,380 5,710 9,520 17,610 Desired inventory, September 30 2,670 2,430 6,410 11,510 Direct labor cost: Kiln Department Decorating Department Total Total direct labor cost budgeted for September $49,550 $143,700 $193,250 Finished goods inventories: Dish Bowl Figurine Total Estimated inventory, September 1 $5,280 $3,010 $2,480 $10,770 Desired inventory, September 30 3,380 4,170 3,960 11,510 Work in process inventories: Estimated inventory, September 1 $3,220 Desired inventory, September 30 1,800 Budgeted factory overhead costs for September: Indirect factory wages $74,300 Depreciation of plant and equipment 10,640 Power and light 4,720 Indirect materials 3,310 Total 92,970Explanation / Answer
Budgeted cost of goods sold Direct materials used: Beginning raw materials inventory 17610 Add:budgeted direct material purchase 191470 Total raw materials available 209080 Less: Ending raw materials inventory 11510 Direct materials used 197570 Direct labor 193250 Factory overhead Indirect factory wages 74300 Depreciation of plant and equipment 10640 Power and light 4720 Indirect materials 3310 Total manufacturing overhead 92970 Total manufacturing cost 483790 Add: Beginning work in process inventory 3220 487010 Les: Ending work in process inventory 1800 Cost of goods manufactured 485210 Add: beginning finished goods inventory 10770 Total goods available for sale 495980 Less:ending finished goods inventory 11510 Cost of goods sold 484470