Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company’s cost accountant has assembled the following information.

The company uses the first-in, first-out method to report 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. Finished goods inventory, March 31. (Remember to use the first-in, first-out method in pricing the inventory.)

d. Cost of goods sold.

Transcribed Image Text:

Sales (budgeted) ... Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) Units 160,000 20,000 32,000 ? Dollars $6,400,000 500,000 ? ?