Cost of Goods Sold Budget The controller of MingWare Ceramic

Cost of Goods Sold Budget

The controller of MingWare Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:

Use the preceding information to prepare a cost of goods sold budget for September. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Direct materials:	Enamel	Paint	Porcelain	Total
Total direct materials purchases budgeted for September	$37,470		$7,870		$146,130		$191,470
Estimated inventory, September 1	2,380		5,710		9,520		17,610
Desired inventory, September 30	2,670		2,430		6,410		11,510
Direct labor cost:	Kiln Department	Decorating Department	Total
Total direct labor cost budgeted for September	$49,550	$143,700	$193,250
Finished goods inventories:	Dish	Bowl	Figurine	Total
Estimated inventory, September 1	$5,280		$3,010		$2,480		$10,770
Desired inventory, September 30	3,380		4,170		3,960		11,510
Work in process inventories:
Estimated inventory, September 1	$3,220
Desired inventory, September 30	1,800
Budgeted factory overhead costs for September:
Indirect factory wages	$74,300
Depreciation of plant and equipment	10,640
Power and light	4,720
Indirect materials	3,310
Total	92,970

Solution

Budgeted cost of goods sold Direct materials used: Beginning raw materials inventory 17610 Add:budgeted direct material purchase 191470 Total raw materials available 209080 Less: Ending raw materials inventory 11510 Direct materials used 197570 Direct labor 193250 Factory overhead Indirect factory wages 74300 Depreciation of plant and equipment 10640 Power and light 4720 Indirect materials 3310 Total manufacturing overhead 92970 Total manufacturing cost 483790 Add: Beginning work in process inventory 3220 487010 Les: Ending work in process inventory 1800 Cost of goods manufactured 485210 Add: beginning finished goods inventory 10770 Total goods available for sale 495980 Less:ending finished goods inventory 11510 Cost of goods sold 484470