Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.65 Direct labor 0.60 Variable overhead 0.80 Fixed overhead 1.85 Total unit cost $4.90 For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 317,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.)
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following
| Direct materials | $1.65 |
| Direct labor | 0.60 |
| Variable |
0.80 |
| Fixed overhead | 1.85 |
| Total unit cost | $4.90 |
For the coming year, Play-Disc expects to make 330,000 plastic discs, and to sell 317,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.90. (There are no beginning or ending inventories of work in process.)
Required:
Question Content Area
1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. If required, round your answers to the nearest cent.
| Unit costs: | |
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$- Select - |
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| Overhead: | |
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- Select - |
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| Total cost per unit | $fill in the blank 16a022fb2fbc07b_9 |
| Total ending inventory cost | $fill in the blank 16a022fb2fbc07b_10 |
Question Content Area
2. What if sales increased to 332,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Finished goods inventory has to $fill in the blank e8de81f96f82fa3_2
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