The following information relating to the current year:
DEC31 JAN1
Materials inventory..............................................................................$20,000 $25,000
Work in process inventory.....................................................................37,50040,000
Finished goods inventory Jan 1 (10,000 units @ $21/unit) ? 210,000
Purchases of direct matierals during year................................................. 330,000
Direct labor costs assigned to production................................................ 375,000
Manufacturing overhead........................................................................ 637,500
The company manufactures a single product, during the current year 45,000 units were manufactured and 40,000 units were sold.
INSTRUCTION:
A. Prepare a schedule of the cost of finished goods manufactured for the current year. (Show 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 FICO (first in first out) method of inventory costing is used.
By you showing how you come up with each answer (showing the computations-as where to place correct numbers for each answer; will better help me to understand how to do these problems) I get confused on how to come up with the mathematical answers and proper placement. Thank you
D. Compute the cost of the inventory of finished goods at DEC 31 of the current year, assuming the FIFO (first in first out) method of inventory costing is used.