Reference no: EM13994210

Midnight Kitchenware produces high-end blenders for commercial kitchens. They have the following information available about their inventory levels at the end of 2014:

Materials: $40,000 4,000lbs. 
WIP: $0 
Finished Goods: $69,000 800 units

Midnight is preparing a budget for 2014, and makes the following assumptions: 

9,000 units will be sold 
5lbs of material is needed to produce each unit 
Material costs $12 per pound 
0.5 hrs of labor needed to produce each unit 
Labor costs are $24 per hour 
Overhead applied at a rate of $20 per labor hour 
5000 lbs. of material to be left in inventory
No ending balance in WIP
1,000 units to be left in finished goods

Midnight uses the FIFO system for valuing its inventory. 

Calculate the following: 

• The budgeted value of purchases
• The budgeted ending value of finished goods inventory
• The budgeted cost of goods manufactured
• The budgeted cost of goods sold