Cost of Goods Sold Budget Daybook Inc. budgeted production of 403,500 personal j

Question

Cost of Goods Sold Budget

Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 40,400 square yards. The desired December 31, 20Y6, paper inventory is 38,900 square yards. Paper costs $0.40 per square yard.

Each journal requires assembly. Assume that eight minutes are required to assemble each journal. Assembly labor costs $13.00 per hour.

Prepare a cost of goods sold budget for Daybook Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $28,000 and $16,500, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $30,000 and $14,300, respectively. Factory overhead was budgeted at $214,600. Round your interim calculations to nearest cent, if required.

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If assembly labor costs $13.00 per hour, determine the direct labor cost budget for 20Y6. Round your interim calculations to nearest cent, if required.
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DAYBOOK INC. Cost of Goods Sold Budget For the Year Ending December 31, 20Y6 $ $ Direct materials: $ $ Cost of direct materials placed in production $ Total work in process during period $ $ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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2-Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Each journal requires assembly. Assume that eight minutes are required to assemble each journal.

If assembly labor costs $13.00 per hour, determine the direct labor cost budget for 20Y6. Round your interim calculations to nearest cent, if required.
$

Which of these statements best fits how a behavioral economist might view a situation? Doliars are fungible.or have equal vailue to the indvidual regardess of the situation O If you find $100 on the street you will be more likely to spend if freely than you would be to take $100 out of your bank account. O If you lost $20 today but then found $20 later on you would feel neutral because it's as if you never lost anything at all.

Explanation / Answer

Solution 1:

Solution 2:

Time required for production of 403500 personal journals = 403500 * 8 = 3228000 minutes = 53800 hours

Direct labor cost per hour = $13

Budgeted direct labor cost = 53800*$13 = $699,400

Daybook Inc. Cost of Goods Sold Budget For the year ended Dec 31, 20Y6 Particulars Details Amount Beginning Finished goods inventory $28,000.00 Cost of Production: Direct Material consumed: Beginning raw material Inventory $16,160.00 Raw material purchased ([403500*6 + 38900 - 40400)*$0.40] $967,800.00 Ending raw material inventory -$15,560.00 Cost of direct materials placed in production $968,400.00 Direct labor (403500*8/60*$13) $699,400.00 Factory overhead $214,600.00 Opening WIP $16,500.00 Ending WIP -$14,300.00 Cost of Production $1,884,600.00 Cost of Jounral available for sale $1,912,600.00 Less: Endingin finished goods inventory $30,000.00 Budgeted cost of goods sold $1,882,600.00

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