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

Walker Domestic uses the average cost 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. Ending finished goods inventory. (Remember that in using the average cost method you first must compute the average cost of units available for sale.)
d. Cost of goods sold.
e. Gross profit.

Transcribed Image Text:

Sales (budgeted) Finished goods inventory, beginning of quarter Finished goods inventory, end of quarter Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) Units Dollars 135,000 $7,820,000 34,200 1,346,400 25,200 ? ? ?