Determining Unit Costs Using the Cost of Finished Goods Manufactured
The accounting records of the Maine Products Company include the following information relating to the current year:
Dec. 31Jan. 31
Materials inventory$ 22,000$ 30,000
Work in process inventory39,00039,000
Finished goods inventory, Jan. 1 (8,000 units @ 22 per unit)?176,000
Purchases of direct materials during year290,000
Direct labor costs assigned to production350,000
Manufacturing overhead applied to production552,000
The company manufactures a single product; during the current year, 60,000 units were manufactured and 50,000 units were sold.
Prepares 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 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.
16-8Alternate Problems for use with Financial and Managerial Accounting, 12e
© The McGraw-Hill Companies, 2002