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Time Remaining: 00:59:32 Submit Quiz This Question: 5 pts 1 of 1 This Quiz: 5 pts possible Question Help Buffalo Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017. EB (Click the lcon to view the costs incurred during 2017.) (Clck the icon to view the inventory data) Revenues in 2017 were $439,300. The selling price per unit and the purchase price per pound of direct materials were stable throughout the year. The company's ending inventory of finished goods is carried at the average unit manufacturing cost for 2017. Finished-goods inventory at December 31, 2017, was $28,800 Read the requirements Requirement 1. Calculate direct materials inventory, total cost, December 31, 2017. Determine the formula, then calculate ending direct materials total cost. Ending direct materials total cost Requirement 2. Calculate finished-goods inventory, total units, December 31, 2017 Before we calculate the units for ending finished goods, we will first calculate the total cost of goods manufactured. (If a box is not used in the table, leave the box empty, do not enter a zero.) Manufacturing costs for 107,500 units Variable Fixed Total Direct materials used Choose from any list or enter any number in the input fields and then continue to the next question Save for Later

Explanation / Answer

Requirement # 1:

Requirement # 2:

Cost per unit = $ 258,000 / 107,500 = $ 2.40 per unit.

Ending finished goods inventory in units = Cost of Ending Finished Goods Inventory / Cost per Unit = $ 28,800 / $ 2.40 = 12,000 units.

Cost of Goods Sold = Cost of Beginning Finished Goods Inventory + Cost of Goods Manufactured - Cost of Ending Finished Goods Inventory = $ 0 + $ 258,000 - $ 28,800 = $ 229,200.

Requirement # 3.

Number of units sold = 107,500 - 12,000 = 95,500.

Selling price per unit = Sales Revenue / Number of Units Sold = $ 439,300 / 95,500 = $ 4.60.

Requirement # 4:

Number of lbs. of Direct Materials x Cost per lb. = Ending Direct Materials Total Cost 2,400 lbs. $ 150,500 / (107,500 x 2) $ 1,680

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