Budgeted Cost of Goods Sold and Ending Inventory
Unit cost calculation:
Direct Materials (2 kg. x $1.50) = $3.00
Direct Labour (1/2 hour x $5.00) = 2.50
Variable Overhead ($2.50 x 1.50) = 3.75
Fixed Overhead ($5.00 x 1.077) = 5.39
Sales (units) 50,000 75,000 90,000 80,000 295,000
@ $14.64 $732,000 $1,098,000 $1,317,600 $1,171,200 $4,318,800
Value of Ending Inventory = 12,000 units x $14.64 = $175,680
1st Qtr. 2nd Qtr 3rd Qtr. 4th Qtr. Total