Daybook Inc. budgeted production of 403,500 personal journals in20Y6. Paper is required to produce a journal. Assume six squareyards of paper are required for each journal. The estimated January1, 20Y6, paper inventory is 40,400 square yards. The desiredDecember 31, 20Y6, paper inventory is 38,900 square yards. Papercosts $0.40 per square yard.
Each journal requires assembly. Assume that eight minutes arerequired to assemble each journal. Assembly labor costs $13.00 perhour.
Prepare a cost of goods sold budget for Daybook Inc. using theinformation above. Assume the estimated inventories on January 1,20Y6, for finished goods and work in process were $28,000 and$16,500, respectively. Also assume the desired inventories onDecember 31, 20Y6, for finished goods and work in process were$30,000 and $14,300, respectively. Factory overhead was budgeted at$214,600. Round your interim calculations to nearest cent, ifrequired.
| DAYBOOK INC. |
| Cost of Goods Sold Budget |
| For the Year Ending December 31, 20Y6 |
| | | $ |
| | $ | |
| Direct materials: | | | |
| $ | | |
| | | |
| $ | | |
| | | |
| Cost of direct materials placed in production | $ | | |
| | | |
| | | |
| | | |
| Total work in process during period | | $ | |
| | | |
| | | |
| | | $ |
| | | |
| | | $ |
