Question:
Preparing cost of goods sold budget
Prepare a cost of goods sold budget for the Summit Manufacturing Company for the year ended December 31, 2011, from the following estimates. Inventories of production units:
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Work in
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Finished
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Process
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Goods
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1-Jan-11
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$28,500
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$19,300
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December 31, 2011
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23,700
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22,400
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Direct materials purchased during the year, $854,000; beginning inventory of direct materials, $31,000; and ending inventory of direct materials, $26,000. Totals from other budgets included:
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Direct labor cost
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$539,500
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Total factory overhead costs
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818,000
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