MingWare Ceramics Inc.Cost of Goods Sold BudgetFor the Month Ending September 30Finished goods inventory, September 1Work in process inventory, September 1Direct materials:Direct materials inventory, September 1Direct materials purchasesCost of direct materials available for useDirect materials inventory, September 30Cost of direct materials placed in productionDirect laborFactory overheadTotal manufacturing costsTotal work in process during the periodWork in process inventory, September 30Cost of goods manufacturedCost of direct materials available for useFinished goods inventory, September 30Cost of goods sold 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:Direct materials:EnamelPaintPorcelainTotalTotal direct materials purchases budgeted for September$35,610$7,480$138,880$181,970Estimated inventory, September 12,1505,1608,60015,910Desired inventory, September 303,3703,0708,09014,530Direct labor cost:Kiln DepartmentDecorating DepartmentTotalTotal direct labor cost budgeted for September$53,350$154,720$208,070Finished goods inventories:DishBowlFigurineTotalEstimated inventory, September 1$5,750$3,280$2,700$11,730Desired inventory, September 303,6804,5404,31012,530Work in process inventories:Estimated inventory, September 1$3,510Desired inventory, September 301,960Budgeted factory overhead costs for September:Indirect factory wages$77,400Depreciation of plant and equipment14,510Power and light4,990Indirect materials3,350Total100,250Use 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.

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 16E

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