PROBLEM $16\mathrm{.}7$A

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.

$$ Dec. $31$ Jan. $1$

Materials inventory $$20,000$ $$25,000$

Work in process inventory $37,50040,000$

Finished goods inventory, Jan. $1(10,000$ units @ $$21$ per unit$)?210,000$

Purchases of direct materials during year $330,000$

Direct labor costs assigned to production $375,000$

Manufacturing overhead $637,500$

page $759$

The company manufactures a single product; during the current year, $45,000$ units were manufactured and $40,000$ units were sold.

Instructions

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.$)$

Compute the average per$-$unit cost of production during the current year.

Compute the cost of goods sold during the year, assuming that the FIFO $($first$-$in$,$ first$-$out$)$ method of inventory costing is used.

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.