Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: $1.70 0.50 0.85 Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Show Transcribed T For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 280,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.) Requireu. 1.85 $4.90 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost Total manufacturing cost $ 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-Disc Cost of Goods Sold Budget For the Year Cost of goods sold 3. What if the beginning inventory of finished goods was $92,300 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would to $
Cost of Goods Sold Budget Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: $1.70 0.50 0.85 Direct materials Direct labor Variable overhead Fixed overhead Total unit cost Show Transcribed T For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 280,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.) Requireu. 1.85 $4.90 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials Budgeted direct labor Budgeted overhead Total budgeted manufacturing cost Total manufacturing cost $ 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-Disc Cost of Goods Sold Budget For the Year Cost of goods sold 3. What if the beginning inventory of finished goods was $92,300 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would to $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Cost of Goods Sold Budget
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total unit cost
Die slania egen in mani
Show Transcribed Text
Requireu:
For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 280,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.90. (There are no beginning or ending
inventories of work in process.)
$1.70
0.50
0.85
1.85
Total manufacturing cost $
$4.90
1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead.
Budgeted direct materials.
Budgeted direct labor
Budgeted overhead
Total budgeted manufacturing cost
Cost of goods sold.
2. Prepare a cost of goods sold budget for Play-Disc for the year.
Play-Disc
Cost of Goods Sold Budget
For the Year
$
3. What if the beginning inventory of finished goods was $92,300 (for 19,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)
The cost of goods sold would
to $
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