Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 37

A Cost of goods sold budget
Prepare a cost of goods sold budget for MyLife Chronicles Inc. using the information in Practice Exercises 22-3A and 22-4A. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $25,000 and $19,000, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $31,500 and $16,700, respectively. Factory overhead was budgeted at $197,100.
B Cost of goods sold budget
Prepare a cost of goods sold budget for Magnolia Candle Inc. using the information in Practice Exercises 22-3B and 22-4B. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $9,800 and $3,600, respectively. Also assume the desired inventories on December 31, 2016, for finished goods and work in process were $12,900 and $3,500, respectively. Factory overhead was budgeted at $109,600.