From the following details provided by Barry, Inc, prepare the cost of goods sold budget for the year

Direct materials per unit $65
Direct labor hours per unit 2 hours
Direct labor rate per hour $50
Manufacturing overhead cost per direct labor hour $20
Beginning inventory units 1,000
Sales price per unit $250

First Second Third Fourth
Quarter Quarter Quarter Quarter

Units expected to be sold: 15,000 18,000 21,000 24,000
Barry, Inc expects no inventory units at the end of the second, third and fourth quarters.

What will be an ideal response

Barry, Inc.
Cost of Goods Sold Budget
For the Year Ended December 31, 20XX

First Second Third Fourth
Quarter Quarter Quarter Quarter
Beginning inventory (1,000 units)* $205,000
Units produced and sold in 20XX
@ $205 each 2,870,000 $3,690,000 $4,305,000 $4,920,000
(15,000**, 18,000, 21,000, 24,000
units per quarter) _________ _________ _________ _________
Total budgeted cost of goods
sold $3,075,000 $3,690,000 $4,305,000 $4,920,000

*Calculation of cost of beginning inventory:

Direct materials cost per unit $65
Direct labor cost per unit (2 DLHr per unit x $50 ) $100
Manufacturing overhead cost per unit (2 DLHr per unit x $20 per DLHr) $40
Total projected manufacturing cost per unit for 20XX $205
Beginning inventory units x 1,000
Cost of beginning inventory ($205 x 1,000 ) $205,000

** First Quarter - 14,000 produced; 15,000 units sold