Cost of goods sold budget Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for January. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during January. The candle wax costs $1.24 per pound. Prepare a cost of goods sold budget for Pasadena Candle Inc. using the information above. Assume the estimated inventories on January 1 for finished goods and work in process were $200,000 and $41,250, respectively and direct materials wax inventory of 16,000 pounds. Also assume the desired inventories on January 31 for finished goods and work in process were $120,000 and $28,500, respectively and direct materials wax inventory of 12,500 pounds. Factory overhead was budgeted at $300,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pasadena Candle Inc. Cost of Goods Sold Budget For the Month Ending January 31 Direct labor $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 Cost of direct materials placed in production $fill in the blank 13 fill in the blank 15 fill in the blank 17 fill in the blank 19 Total work in process during period $fill in the blank 20 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
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Cost of goods sold budget
Pasadena Candle Inc. budgeted production of 785,000 candles for January. Each candle requires molding. Assume that six minutes are required to mold each candle. If molding labor costs $18 per hour, determine the direct labor cost budget for January. Wax is required to produce a candle. Assume 487,125 pounds of material will be purchased during January. The candle wax costs $1.24 per pound.
Prepare a cost of goods sold budget for Pasadena Candle Inc. using the information above. Assume the estimated inventories on January 1 for finished goods and work in process were $200,000 and $41,250, respectively and direct materials wax inventory of 16,000 pounds. Also assume the desired inventories on January 31 for finished goods and work in process were $120,000 and $28,500, respectively and direct materials wax inventory of 12,500 pounds. Factory overhead was budgeted at $300,000. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
| Pasadena Candle Inc. | |||
| Cost of Goods Sold Budget | |||
| For the Month Ending January 31 | |||
| Direct labor | $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 | |||
| Cost of direct materials placed in production | $fill in the blank 13 | ||
| fill in the blank 15 | |||
| fill in the blank 17 | |||
| fill in the blank 19 | |||
| Total work in process during period | $fill in the blank 20 | ||
| 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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