Assume you are the accounting manager of Kitten Ltd. being asked from your senior manager to prepare inventory records and compute the closing value of inventory, cost of manufacturing, and cost of goods sold to be reported in the Financial Statements. Following are the inventory related activities that were performed during the period.

1 Purchased 960 units @ 56 per unit

2 Purchased 420 units @54 per unit

3 Issued 280 units to the manufacturing department

4 Manufacturing department worked on the 280 units and incurred $4,430 as direct cost and $2,870 as indirect cost towards completing these units.

5 Purchased 170 units @57 per unit

6 Issued 610 units to the manufacturing department, which were completed and $8,460 was spent on its manufacturing

7 Sold 180 units with the selling price of $105 per unit

8 Purchased 210 units @53.5 per unit

9 Issued 340 units to the manufacturing department The manufacturing department could complete only 210 units Following are the costs that were incurred on 340 units Cleaning $1,460 Direct labor $3,050 Utilities $180 Chemicals $115 Allocation on indirect cost $2,690 Out of these cost, 80% belongs to the completed goods

10 Sold 95 units @105 per unit

Assume that the stores department had a opening balance of 130 units purchase for a total value of $7,020 (Use weighted average method of inventory valuation)

Answer rating: 100% (QA)

Closing Value of Inventory Raw Materials 3634280 Work in Process 489276 Finished Goods 6461569 Total ... View the full answer