sts: Direct materials $1.80 Direct labor 0.45 Variable overhead 0.80 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 381,000 of them. Budgeted beginning inventory in uni

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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4. Ending Finished Goods Inventory Budget

Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs:

Direct materials $1.80
Direct labor 0.45
Variable overhead 0.80
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 381,000 of them. Budgeted beginning inventory in units is 20,000 with unit cost of $4.85. (There are no beginning or ending inventories of work in process.)

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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 f335210a2015029_9
Total ending inventory cost $fill in the blank f335210a2015029_10
 

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2. What if sales increased to 405,000 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 48f3c4fd4060ffd_2

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