X hits on this document

143 views

0 shares

0 downloads

0 comments

8 / 14

Problem 16.8A

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.

Instructions

a.

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.)

b.

Compute the average per-unit cost of production during the 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.

16-8Alternate Problems for use with Financial and Managerial Accounting, 12e

© The McGraw-Hill Companies, 2002

Document info
Document views143
Page views168
Page last viewedMon Dec 05 07:14:33 UTC 2016
Pages14
Paragraphs390
Words2576

Comments