Question

Good Night manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $51,000, $28,000, and $33,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $48,000, $35,000, and $29,000, respectively. Direct material purchases were $555,000. Direct labor was $252,000 for the year. Factory overhead was $176,000. Prepare a cost of goods sold budget for Good Night, Inc. Good Night, Inc. Cost of Goods Sold Budget For the Year Ending December 31 Finished goods inventory, January 1 $fill in the blank 1 Work in process inventory, January 1 $fill in the blank 2 Direct materials: Direct materials inventory, January 1 $fill in the blank 3 Direct materials purchases fill in the blank 4 Cost of direct materials available for use $fill in the blank 5 Less direct materials inventory, December 31 fill in the blank 6 Cost of direct materials placed in production $fill in the blank 7 Direct labor fill in the blank 8 Factory overhead fill in the blank 9 Total manufacturing costs fill in the blank 10 Total work in process during the period $fill in the blank 11 Less work in process inventory, December 31 fill in the blank 12 Costs of good manufactured fill in the blank 13 Cost of finished goods available for sale $fill in the blank 14 Less finished goods inventory, December 31 fill in the blank 15 Costs of goods sold $fill in the blank 16

Answer 1

See below

Step-by-step explanation:

1. Step 1

Determine the direct materials used in production

Beginning materials inventory

$33,000

Add materials purchases

$555,000

Less ending materials inventory

($29,000)

Direct materials used in production

$559,000

Step 2

Determine the cost of goods manufactured

Beginning work in process inventory

$28,000

Add manufacturing costs;

Direct materials used

$559,000

Direct labor

$252,000

Factory overhead

$176,000

Less ending work in process inventory

($35,000)

Cost of goods manufactured

$980,000

3. Step 3

Prepare the cost of goods sold

Beginning finished good inventory

$51,000

Add cost of goods sold

$980,000

Less ending finished goods inventory

($48,000)

Cost of goods sold

$947,000