Ply-Disc makes Frisbee-type plastic discs. Each 12 inch diameter plastic disc has the following manufacturing costs
Direct material $1.67
Direct labor 0.56
Variable overhead 0.72
Fixed overhead 1.80
Total unit cost 4.75
For the coming year, Play Disc expects to make 300,000 plastic discs, an to sell 285,000 of them. Budgeted beginning inventory is units is 16,000 with unit cost of $4.75. (There are no beginning or ending inventories of work in process). Calculat the total budgeted cost of units produced for Play Dosc for the coming year. Show the cost of direct materials, direct labor, and overhead. And prepare a cost of goods sold budget for Play Disc for the year.
The total budgeted cost of units produced $1,425,000
Total unit cost includes all the manufacturing costs like material, labor and overhead. It is used to calculating the inventory value.
As there is no beginning and ending inventory of work in process. The given beginning and ending inventory is Finished goods inventory.
Beginning Inventory = 16,000 units x $4.75 per unit = $76,000
Total Budgeted cost =
Unit produced = 300,000 units
Cost of Goods sold Budget
Direct material $501,000
Direct labor $168,000
Variable overhead $216,000
Fixed overhead $540,000
Total Manufacturing cost $1,425,000
Add: Beginning Finished goods inventory $76,000
Less: Ending Finished goods inventory $147,250
Cost of Goods Sold $1,353,750
Direct material = $1.67 x 300,000 units = $501,000
Direct labor = $0.56 x 300,000 units = $168,000
Variable overhead = $0.72 x 300,000 units = $216,000
Fixed overhead = $1.80 x 300,000 units = $540,000
Total Budgeted cost = $501,000 + $168,000 + $216,000 + $540,000 = 1,425,000
Ending Finished goods inventory = Beginning Finished goods inventory + Production in the period - Sales in the period = 16,000 + 300,000 - 285,000 = 31,000 units
Value of Ending Finished goods inventory = 31,000 units x 4.75 = $147,250
what is wrong with black soap shampoo?