Determining Unit Costs Using the Cost of Finished Goods Manufactured The accounting records of Idaho Paper...

 

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Determining Unit Costs Using the Cost of Finished Goods Manufactured The accounting records of Idaho Paper Company include the following information relating to the current year. Materials inventory... Work in process inventory.. Finished goods inventory, Jan. 1 (10,000 units @ $21 per unit). Purchases of direct materials during year.. Direct labor costs assigned to production... Manufacturing overhead..... Dec. 31 Jan. 1 $20,000 $25,000 37,500 40,000 ? 210,000 330,000 375,000 637,500 The company manufactures a single product; during the current year, 45,000 units were manufactured and 40,000 units were sold. page 759 Instructions a. Prepare a schedule of the cost of finished goods manufactured for the current year. (Show a supporting computation of the cost of direct materials used during the year.) b. Compute the average per-unit cost of production during the current year. c. Compute the cost of goods sold during the year, assuming that the FIFO (first-in, first-out) method of inventory costing is used. d. Compute the cost of the inventory of finished goods at December 31 of the current year, assuming that the FIFO (first-in, first-out) method of inventory costing is used. Determining Unit Costs Using the Cost of Finished Goods Manufactured The accounting records of Idaho Paper Company include the following information relating to the current year. Materials inventory... Work in process inventory.. Finished goods inventory, Jan. 1 (10,000 units @ $21 per unit). Purchases of direct materials during year.. Direct labor costs assigned to production... Manufacturing overhead..... Dec. 31 Jan. 1 $20,000 $25,000 37,500 40,000 ? 210,000 330,000 375,000 637,500 The company manufactures a single product; during the current year, 45,000 units were manufactured and 40,000 units were sold. page 759 Instructions a. Prepare a schedule of the cost of finished goods manufactured for the current year. (Show a supporting computation of the cost of direct materials used during the year.) b. Compute the average per-unit cost of production during the current year. c. Compute the cost of goods sold during the year, assuming that the FIFO (first-in, first-out) method of inventory costing is used. d. Compute the cost of the inventory of finished goods at December 31 of the current year, assuming that the FIFO (first-in, first-out) method of inventory costing is used.

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a Schedule of Cost of Finished Goods Manufactured Direct materials Materials inventory January 1 250... View the full answer