Warmfeet manufactures comforters. Assume the estimated inventories on January 1, 2012, for finished goods, work in process, and materials were $40,000, $34,000 and $27,000, respectively. Also assume the desired inventories on December 31, 2012, for finished goods, work in process, and materials were $42,000, $33,000 and $20,000, respectively. Direct material purchases were $570,000. Direct labor was $211,000 for the year. Factory overhead was $152,000.

Prepare a cost of goods sold budget for Warmfeet, Inc.

Warmfeet, Inc.
Cost of Good Sold Budget
For the Year Ending December 31, 2012
Finished goods inventory, January 1, 2012						$
Work in process inventory, January 1, 2012				$
Direct materials inventory, January 1, 2012		$
Direct materials purchases
Cost of direct materials available for sale		$
Less direct materials inventory December 31, 2012
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, 2012
Costs of goods manufactured
Cost of finished goods available for sale
Less finished goods inventory, December 31, 2012
Costs of goods sold						$

Answer rating: 100% (QA)

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