Cost of Goods Sold 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 0.55 Variable overhead 0.85 Fixed overhead 1.90 Total unit cost $5.10 For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 17,000 with unit cost of $5.10. (There are no beginning or ending inventories of work in process.) Required: Question Content Area 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. Budgeted direct materials $fill in the blank 77f748f3a044073_1 Budgeted direct labor fill in the blank 77f748f3a044073_2 Budgeted overhead fill in the blank 77f748f3a044073_3 Total budgeted manufacturing cost $fill in the blank 77f748f3a044073_4 Question Content Area 2. Prepare a cost of goods sold budget for Play-Disc for the year. Play-DiscCost of Goods Sold BudgetFor the Year $- Select - - Select - - Select - Total manufacturing cost $fill in the blank 80eeb5ff406afba_7 - Select - - Select - Cost of goods sold $fill in the blank 80eeb5ff406afba_12 Question Content Area 3. What if the beginning inventory of finished goods was $86,000 (for 17,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) The cost of goods sold would to $fill in the blank 15aab8060fa3f90_2.
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
Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following
| Direct materials | $1.80 |
| Direct labor | 0.55 |
| Variable |
0.85 |
| Fixed overhead | 1.90 |
| Total unit cost | $5.10 |
For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 17,000 with unit cost of $5.10. (There are no beginning or ending inventories of work in process.)
Required:
Question Content Area
1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead.
| Budgeted direct materials | $fill in the blank 77f748f3a044073_1 |
| Budgeted direct labor | fill in the blank 77f748f3a044073_2 |
| Budgeted overhead | fill in the blank 77f748f3a044073_3 |
| Total budgeted manufacturing cost | $fill in the blank 77f748f3a044073_4 |
Question Content Area
2. Prepare a cost of goods sold budget for Play-Disc for the year.
|
|
$- Select - |
|
|
- Select - |
|
|
- Select - |
| Total manufacturing cost | $fill in the blank 80eeb5ff406afba_7 |
|
|
- Select - |
|
|
- Select - |
| Cost of goods sold | $fill in the blank 80eeb5ff406afba_12 |
Question Content Area
3. What if the beginning inventory of finished goods was $86,000 (for 17,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.)
The cost of goods sold would
to $fill in the blank 15aab8060fa3f90_2.
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