Kent Corporation manufactures filtration systems. The manufacturing costs incurred during its first year of operations are as follows.

During the year, 220 completed units were manufactured, of which 180 were sold. (Assume that ending Finished Goods Inventory and the Cost of Goods Sold amounts are determined using the average per-unit cost of manufacturing a completed filtration system).

Instructions.
a. Compute each of the following and show all computations.
1. The average per-unit cost of manufacturing a completed system during the current year.

2. The year-end balances of the following inventories: materials, work in process, and finished goods.
3. The cost of goods sold during the year.
b. For the current year, the costs of direct materials purchased, direct labor, and manufacturing overhead totaled $944,000. Is this the amount of manufacturing costs deducted from revenue in the current year? Explain fully.

Transcribed Image Text:

Direct materials purchased.. Direct materials used .. Direct labor... Manufacturing overhead ..... Cost of finished goods manufactured (220 units)... $332,000 308,000 268,000 344,000 704,000