Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: Direct materials $1.75 Direct labor 0.55 Variable overhead 0.75 Fixed overhead 1.80     Total unit cost $4.85 For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 386,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.85. (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. Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year Unit costs:     $- Select -   - Select - Overhead:     - Select -   - Select - Total cost per unit $fill in the blank 34b4c300603cfcc_9 Total ending inventory cost $fill in the blank 34b4c300603cfcc_10   Question Content Area 2. What if sales increased to 418,000 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 222d120db034fac_2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:

Direct materials $1.75
Direct labor 0.55
Variable overhead 0.75
Fixed overhead 1.80
    Total unit cost $4.85

For the coming year, Play-Disc expects to make 400,000 plastic discs, and to sell 386,000 of them. Budgeted beginning inventory in units is 19,000 with unit cost of $4.85. (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.

Play-DiscEnding Finished Goods Inventory BudgetFor the Coming Year
Unit costs:  
 
$- Select -
 
- Select -
Overhead:  
 
- Select -
 
- Select -
Total cost per unit $fill in the blank 34b4c300603cfcc_9
Total ending inventory cost $fill in the blank 34b4c300603cfcc_10
 

Question Content Area

2. What if sales increased to 418,000 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 222d120db034fac_2

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