Soft Glow Candle Inc. budgeted production of 96,800 candles in 20Y4. Wax is required to produce a candle. Assume that 8 ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 3,100 pounds. The desired December 31, 20Y4, wax inventory is 5,200 pounds. Candle wax costs $3.80 per pound. Each candle requires molding. Assume that 9 minutes are required to mold each candle. Molding labor costs $15.00 per hour. Prepare a cost of goods sold budget for Soft Glow Candle Inc., using the information above. Assume that the estimated inventories on January 1, 20Y4, for finished goods and work in process were $10,560 and $6,440, respectively. Also assume that the desired inventories on December 31, 20Y4, for finished goods and work in process were $13,050 and $5,920, respectively. Factory overhead was budgeted at $95,170. Round your interim calculations to nearest cent, if required. Soft Glow Candle Inc.Cost of Goods Sold BudgetFor the Year Ending December 31, 20Y4
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.
Soft Glow Candle Inc. budgeted production of 96,800 candles in 20Y4. Wax is required to produce a candle. Assume that 8 ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 20Y4, wax inventory is 3,100 pounds. The desired December 31, 20Y4, wax inventory is 5,200 pounds. Candle wax costs $3.80 per pound.
Each candle requires molding. Assume that 9 minutes are required to mold each candle. Molding labor costs $15.00 per hour.
Prepare a cost of goods sold budget for Soft Glow Candle Inc., using the information above. Assume that the estimated inventories on January 1, 20Y4, for finished goods and work in process were $10,560 and $6,440, respectively. Also assume that the desired inventories on December 31, 20Y4, for finished goods and work in process were $13,050 and $5,920, respectively. Factory
Soft Glow Candle Inc.Cost of Goods Sold BudgetFor the Year Ending December 31, 20Y4
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$Finished goods inventory, January 1, 20Y4 | ||
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$Work in process inventory, January 1, 20Y4 | ||
| Direct materials: | |||
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$Direct materials inventory, January 1, 20Y4 | ||
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Direct materials purchases | ||
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$Cost of direct materials available for use | ||
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Less direct materials inventory, December 31, 20Y4 | ||
| Cost of direct materials placed in production | $fill in the blank 13 | ||
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Direct labor | ||
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Factory overhead | ||
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Total |
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| Total work in process during the period | $fill in the blank 20 | ||
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Less work in process inventory, December 31, 20Y4 | ||
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Cost of goods manufactured | ||
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$Cost of finished goods available for sale | ||
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Less finished goods inventory, December 31, 20Y4 | ||
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