Problem
Sleep Tight manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $39,000, $33,000 and $27,000 respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $43,000, $33,000 and $23,000 respectively. Direct material purchases were $555,000. Direct labor was $220,000 for the year. Factory overhead was $141,000.
Prepare a cost of goods sold budget for Sleep Tight, Inc.