Direct materials: Enamel Paint Porcelain Total
Total direct materials purchases budgeted for September $36,780 $6,130 $145,500 $188,410
Estimated inventory, September 1, 2014 1,240 950 4,250 6,440
Desired inventory, September 30, 2014 1,890 1,070 5,870 8,830
Direct labor cost: Kiln Department Decorating Department Total
Total direct labor cost budgeted for June $47,900 $145,700 $193,600
Finished goods inventories: Dish Bowl Figurine Total
Estimated inventory, September 1, 2014 $5,780 $3,080 $2,640 $11,500
Desired inventory, September 30, 2014 3,710 2,670 3,290 9,670
Work in process inventories:
Estimated inventory, September 1, 2014 $3,400
Desired inventory, September 30, 2014 1,990
Budgeted factory overhead costs for September:
Indirect factory wages $ 81,900
Depreciation of plant and equipment 14,300
Power and light 5,200
Indirect materials 4,100
Total $105,500
Use the preceding information to prepare a cost of goods sold budget for September 2014.
Answer:
MINGWARE CERAMICS INC.
Cost of Goods Sold Budget
For the Month Ending September 30, 2014
Finished goods inventory, September 1, 2014 $ 11,500
Work in process inventory, September 1, 2014 $ 3,400
Direct materials:
Direct materials inventory, September 1, 2014 $ 6,440
Direct materials purchases 188,410
Cost of direct materials available for use $194,850
Less direct materials inventory, September 30, 2014 8,830
Cost of direct materials placed in
production $186,020
Direct labor 193,600
Factory overhead 105,500
Total manufacturing costs 485,120
Total work in process during the period $488,520
Less work in process inventory, September 30, 2014 1,990
Cost of goods manufactured 486,530
Cost of finished goods available for sale $498,030
Less finished goods inventory, September 30, 2014 9,670
Cost of goods sold $488,360
