Renfrow International manufactures and sells a single product. In preparing its master budget for the current quarter, the company’s controller has assembled the following information:

Renfrow International used the average cost method of pricing its inventory of finished goods.

Instructions
Compute the following budgeted quantities or dollar amounts:
a. Planned production of finished goods (in units).
b. Cost of finished goods manufactured.
c. Ending finished goods inventory. (Remember that in using the average cost method you must first compute the average cost of units available for sale.)
d. Cost of goodssold.

Transcribed Image Text:

Units Dollars Sales (budgeted). . Finished goods inventory, beginning of quarter.38,000 Finished goods inventory, end of quarter Cost of finished goods manufactured (assume a 150,000 $7,500,000 975,000 28,000 budgeted manufacturing cost of $28 per unit)