Prepare a cost of goods sold budget for LifeTyme Publishers using the information in Practice Exercises 22-3A and 22-4A. Assume the estimated inventories on January 1, 2014 for finished goods and work in process were $28,000 and $17,000 respectively. Also assume the desired inventories on December 31, 2014 for finished goods and work in process were $12,900 and $3,500 respectively. Factory overhead was budgeted at $205,800.
Practice Exercise: 22-3A - LifeTyme Publishers budgeted production of 191,900 diaries in 2014. Paper is required to produce a diary. Assume seven square yards of paper are required for each diary. The estimated January 1, 2014 paper inventory is 29,100 square yards. The desired December 31, 2014 paper inventory is 32,900 square yards. If paper costs $0.80 per square yard determine the direct materials purchases budget for 2014.
Practice Exercise: 22-4A - LifeTyme Publishers budgeted production of 191,900 diaries in 2014. Each diary requires assembly. Assume that nine minutes are required to assemble each diary. If assembly labor costs $16.00 per hour, determine the direct labor cost budget for 2014.