Ply-Disc makes Frisbee-type plastic discs. Each 12 inch diameter plastic disc has the following manufacturing costs

Direct material $1.67
Direct labor 0.56
Variable overhead 0.72
Fixed overhead 1.80
Total unit cost 4.75
For the coming year, Play Disc expects to make 300,000 plastic discs, an to sell 285,000 of them. Budgeted beginning inventory is units is 16,000 with unit cost of $4.75. (There are no beginning or ending inventories of work in process). Calculat the total budgeted cost of units produced for Play Dosc for the coming year. Show the cost of direct materials, direct labor, and overhead. And prepare a cost of goods sold budget for Play Disc for the year.

The total budgeted cost of units produced $1,425,000

Explanation:

Total unit cost includes all the manufacturing costs like material, labor and overhead. It is used to calculating the inventory value.

As there is no beginning and ending inventory of work in process. The given beginning and ending inventory is Finished goods inventory.

Beginning Inventory = 16,000 units x $4.75 per unit = $76,000

Total Budgeted cost =

Unit produced = 300,000 units

Cost of Goods sold Budget

Direct material             $501,000

Direct labor                  $168,000

Variable overhead      $216,000

Fixed overhead           $540,000

Total Manufacturing cost                               $1,425,000

Add: Beginning Finished goods inventory   $76,000

Less: Ending Finished goods inventory        $147,250  

Cost of Goods Sold                                        $1,353,750

Workings:

Direct material = $1.67 x 300,000 units = $501,000

Direct labor = $0.56 x 300,000 units = $168,000

Variable overhead = $0.72 x 300,000 units = $216,000

Fixed overhead = $1.80 x 300,000 units = $540,000

Total Budgeted cost = $501,000 + $168,000 + $216,000 + $540,000 = 1,425,000

Ending Finished goods inventory = Beginning Finished goods inventory + Production in the period - Sales in the period = 16,000 + 300,000 - 285,000 = 31,000 units

Value of Ending Finished goods inventory = 31,000 units x 4.75 = $147,250

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi