The accounting records of Idaho Paper Company include the following Information relationg to the current year.
Jan Feb
Material Inventory $20,000 $25,000
Work in Process Inventory 37,500 40,000
Finished goods invenetory,Jan 1 ? 210,000
(10,000 units@ $21 per unit)
Purchase of direct materials during 330,000
the year
Direct labor cost assigned to 375,000
production
Manufacturing Overhead 637,000
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 cost of finished goods manufactured for the current year.(Show a supporting commputation 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 th FIFO(first-in, first-out) method of inventory costing is used.
d. Comute the cost of the inventory of the finished goods at December 31 of the current year, assuming that the FIFO (first-in, first-out) method of inventory costing is used.