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Prepare the budget for cost of goods sold

Styling Co. manufactures clothing sets. Each set consists of four shirts, one jean, and one jacket. Manufacturing costs have remained stable during the last year. The manufacturing process is carried out through two (2) processes: Sewing (S) and Packaging (P). Budget for Cost of goods sold Finished goods Inventory 1/1/20 Information for budget Direct material $6,886,440 Direct Labor 2,108,400 Manufacturing Overhead 6,275,000 Total Cost of goods manufactured Manufacturing costs per sets Cost of goods available for sale Direct material: shirts (4) jeans jacket $75.00 42.00 20.00 Finished goods inventory 12/31/20 Costs de Ventas ??? Direct labor Hour Dept. S Dept. P Cost per hour $20.00 $10.00 Cost per set $40.00 $ 2.00 * Estimated based on last years Application base: Units to be produced Inventories: Ending (desired) Direct materials: Beginning Shirts...... $15,000. $10,000 Jackets ............$ 5,000 1.UUU.. . >2U.UUU $20,000 $12,000 ...$ 7,000 Finished products - UUU SOS 1,200 sets ZUU ..1,000 sets... ........... At $304.00 Per set Work in Process is iomaterial. The company uses FIFO. Sales Budget: 50,000 sets at a sale price estimated of $500 Manufacturing overhead Variable costs $1,255,000 Manufacturing overhead fixed costs:$ 5,020,000 Total direct materials to be purchased: $6,886,400 Total manufactory overhead costs: 6,275,000 Total direct labor costs: 2,108,400

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