Cost of Goods Sold Budget
Magnolia Candle Inc. budgeted production of 74,200 candles in20Y4. Wax is required to produce a candle. Assume that eight ounces(one-half of a pound) of wax is required for each candle. Theestimated January 1, 20Y4, wax inventory is 2,500 pounds. Thedesired December 31, 20Y4, wax inventory is 2,100 pounds. Candlewax costs $4.10 per pound.
Each candle requires molding. Assume that 12 minutes arerequired to mold each candle. Molding labor costs $14.00 perhour.
Prepare a cost of goods sold budget for Magnolia Candle Inc.,using the information above. Assume that the estimated inventorieson January 1, 20Y4, for finished goods and work in process were$9,800 and $3,600, respectively. Also assume that the desiredinventories on December 31, 20Y4, for finished goods and work inprocess were $12,900 and $3,500, respectively. Factory overhead wasbudgeted at $109,600. Round your interim calculations to nearestcent, if required.
| MAGNOLIA CANDLE INC. |
| Cost of Goods Sold Budget |
| For the Year Ending December 31, 20Y4 |
| | | $ |
| | $ | |
| Direct materials: | | | |
| $ | | |
| | | |
| $ | | |
| | | |
| Cost of direct materials placed in production | $ | | |
| | | |
| | | |
| | | |
| Total work in process during the period | | $ | |
| | | |
| | | |
| | | $ |
| | | |
| | | $ |
