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Milestone Three $-$ Statement of Cost of Goods Sold

Beginning Work in Process Inventory

Direct Materials:

Materials: Beginning

Add: Purchases for month of January

Materials available for use

Deduct: Ending materials

Materials Used

Direct Labor

Overhead

Total Costs

Deduct: Ending Work in Process Inventory

Cost of Goods SoldSalary and Hiring Data

$$ One collar maker, who will be paid $$16\mathrm{.}00$ per hour and work $40$ hours per week

$$ One leash maker, who will be paid $$16\mathrm{.}00$ per hour and work $40$ hours per week

$$ One harness maker, who will be paid $$17\mathrm{.}00$ per hour and work $40$ hours per week

$$ One receptionist, who will be paid $$15\mathrm{.}00$ per hour and work $30$ hours per week

Other Costs

$$ Rent: $$750$ per month; allocate based on square footage

$$ High$-$tensile strength nylon webbing$$$$12$ per yard of webbing

o $3$ collars per yard of webbing

o $2$ leashes per yard of webbing

o $2$ harnesses per yard of webbing

$$ Polyester$/$nylon ribbons$$$$9$ per yard of ribbon

o $3$ collars per yard of ribbon

o $2$ leashes per yard of ribbon

o $2$ harnesses per yard of ribbon

$$ Buckles made of cast hardware$$$$0\mathrm{.}50$ per buckle

o $4$ buckles used per collar

o $3$ buckles used per leash

o $8$ buckles used per harness

$3$ industrial sewing machines at $$3,300$ each for a total of $$9,900$; depreciation is $$165$ per month $(5-$year life, zero salvage value$)$

$$ Utilities and insurance: $$600$ per month; allocate based on square footage

$$ Scissors, thread, cording: $$1,200$

$$ Price tags: $$250$ for $2,500($$$0\mathrm{.}10$ each$)$

$$ Office supplies: $$2,400$ or $$200$ per month

$$ Other business equipment: $$2,000$

$$ Loan payment of $$550$ per month

$$ Salary drawn of $$500$ per month

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