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

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

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

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.