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Ending Inventories Budget
December 31, 2015
Quantity
Cost per unit
Total
Direct Materials
Plastic
1,766 oz
$0.30
$ 529.80
Bristles
2,272 bunches
0.75
1,704.00
$ 2,233.80
Finished goods
Combs
1,200
$4.85
$ 5,820.00
Brushes
1,400
24.30
34,020.00
39,840.00
Total ending inventory
$42,073.80
10.
Cost of Goods Sold Budget
For the Year Ending December 31, 2015
Beginning finished goods inventory, Jan. 1
($2,700 + $27,180)
$ 29,880
Direct materials used (requirement 5)
$223,410
Direct manufacturing labor (requirement 7)
62,460
Manufacturing overhead (requirement 8)
120,330
Cost of goods manufactured
406,200
Cost of goods available for sale
436,080
Deduct: Ending finished goods inventory, December 31
(reqmt. 9)
39,840
Cost of goods sold
$396,240
11.
Nonmanufacturing Costs Budget
For the Year Ending December 31, 2015
Variable
Fixed
Total
Marketing
$21,150
$90,000
$111,150
Distribution
0
1,170
1,170
Total
$21,150
$91,170
$112,320
12.
Budgeted Income Statement
For the Year Ending December 31, 2015
Revenue
$528,000
Cost of goods sold
396,240
Gross margin
131,760
Operating (nonmanufacturing)
costs
112,320
Operating income
$ 19,440
