Harmony Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information:
|
Units |
|
|
Dollars |
| Sales (budgeted) |
150,000 |
|
$ |
12,150,000 |
| Finished goods inventory, Jan. 1 (actual) |
30,000 |
|
|
1,080,000 |
| Finished goods inventory, Mar. 31 (budgeted) |
20,000 |
|
|
? |
Cost of finished goods manufactured (budgeted
manufacturing cost is $39 per unit) |
? |
|
|
? |
|
|
The company uses the first-in, first-out method of pricing its inventory of finished goods.
|
| a. |
Compute the planned production of finished goods (in units). |
| Planned production of finished goods |
|
| b. |
Compute the cost of finished goods manufactured.
|
| c. |
Compute the finished goods inventory, March 31 (Remember to use the first-in, first-out method in pricing the inventory.)
|
| Finished goods inventory |
$ |
| d. |
Compute the cost of goods sold.
|