Sleep tight, inc. manufactures comforters. the estimated inventories on january 1 for finished goods, work in process, and materials were $37,000, $31,000, and $27,000, respectively. the desired inventories on december 31 for finished goods, work in process, and materials were $46,000, $38,000, and $23,000, respectively. direct materials purchases were $565,000, direct labor was $246,000 for the year, and factory overhead was $140,000. prepare a cost of goods sold budget for sleep tight inc.
cost of goods sold budgetfinished good inventory, jan 1 work in process inventory, jan 1 direct materials, jan 1 direct materials purchases cost of direct materials available for sale less direct materials inventory, dec 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, dec 31 cost of goods manufactured cost of finished goods available for sale less finished goods inventory, dec 31 cost of goods sold