repare a cost of goods sold budget for Se
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.
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:
| Direct materials: | Enamel | Paint | Porcelain | Total | ||||
| Total direct materials purchases budgeted for September | $38,220 | $8,030 | $149,060 | $195,310 | ||||
| Estimated inventory, September 1 | 2,160 | 5,180 | 8,640 | 15,980 | ||||
| Desired inventory, September 30 | 2,620 | 2,380 | 6,290 | 11,290 | ||||
| Direct labor cost: | Kiln Department | Decorating Department | Total | |||||
| Total direct labor cost budgeted for September | $49,960 | $144,880 | $194,840 | |||||
| Finished goods inventories: | Dish | Bowl | Figurine | Total | ||||
| Estimated inventory, September 1 | $5,330 | $3,040 | $2,510 | $10,880 | ||||
| Desired inventory, September 30 | 3,410 | 4,210 | 4,000 | 11,620 | ||||
| Work in process inventories: | ||||||||
| Estimated inventory, September 1 | $3,250 | |||||||
| Desired inventory, September 30 | 1,810 | |||||||
| Budgeted |
||||||||
| Indirect factory wages | $76,700 | |||||||
| 14,190 | ||||||||
| Power and light | 5,150 | |||||||
| Indirect materials | 3,000 | |||||||
| Total | 99,040 |
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.
| MingWare Ceramics Inc. | |||
| Cost of Goods Sold Budget | |||
| For the Month Ending September 30 | |||
| $fill in the blank 2 | |||
| $fill in the blank 4 | |||
| Direct materials: | |||
| $fill in the blank 6 | |||
| fill in the blank 8 | |||
| $fill in the blank 10 | |||
| fill in the blank 12 | |||
| $fill in the blank 14 | |||
| Direct labor | fill in the blank 15 | ||
| fill in the blank 17 | |||
| fill in the blank 19 | |||
| $fill in the blank 21 | |||
| Work in process inventory, September 30 | fill in the blank 22 | ||
| fill in the blank 24 | |||
| $fill in the blank 26 | |||
| fill in the blank 28 | |||
| $fill in the blank 30 |
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