{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chapter 7 lecture notes

# Goods inventory 151200 variable cost of goods sold

This preview shows page 1. Sign up to view the full content.

This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e total variable cost of goods manufactured •  Add materials, labor and (applied) overhead to calculate COGM Preparing a Master Budget – Step 6 – Flowing Costs to Inc Stmt – Variable Cost of Goods Manufactured BuildIT Direct Materials PlasKc - standard grade PlasKc - special grade Dyes Packing materials \$4,809,000 BuildIT- PLUS Total \$4,007,500 \$3,206,000 \$4,809,000 \$2,005,000 \$2,005,000 \$1,002,500 \$5,010,000 \$802,000 \$4,008,000 Direct Labor \$961,800 \$360,900 \$1,322,700 Variable Manufacturing OH \$480,900 \$180,450 Variable cost of goods manufactured \$13,465,200 \$661,350 \$4,350,850 \$17,816,050 DM, DL and Var Mfg OH amounts from related budgets Preparing a Master Budget – Amarillo Toys – Var Cost of Gds Sold Info Since we know BI units, EI units and the budget for COGM, we can calculate total variable cost of goods sold Use inventory equation to calculate COGS and flow these product costs to income statement Preparing a Master Budget – Amarillo Toys – Var Cost of Gds Sold Info Cost of beginning finished goods inventory Plus Cost of goods manufactured Less Cost of ending finished goods inventory Equals Cost of good sold We have already determined cost of goods manufactured Need to determine Beginning Finished Goods Inventory Ending Finished Goods Inventory Preparing a Master Budget – Step 7 – Flowing Costs to Inc Stmt – Variable Cost of Goods Sold Beginning Finished Goods Inventory Units – from original info What is the cost per lot? (DM + DL + Variable OH) Based on current year information – given in this example Variable cost per lot BuildIT BuildIT- PLUS \$1,680 \$2,170 Number of lots in beginning inventory 75 15 Value of beginning FG inventory \$126,000 \$32,550 Preparing a Master Budget – Step 7 – Flowing Costs to Inc Stmt – Variable Cost of Goods Sold Ending Finished Goods Inventory Units – from Production Budget What is the cost per lot? (DM + DL + Variable OH) Based on DM, DL and Variable OH budgets BuildIT BuildIT- PLUS Variable cost per lot PlasKc Dyes Packing boxes Direct labor Variable manufacturing OH Total Number of lots in ending inventory Value of ending FG inventory \$600 \$500 \$400 \$120 \$60 \$1,680 \$1,0...
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online