here is the full question.. The accounting records of Idaho Paper Company includ
ID: 2353956 • Letter: H
Question
here is the full question.. The accounting records of Idaho Paper Company include the following information relating to the current year: materials inventory.. Dec 31. = $20,000...... Jan. 1 = $25,000 work in process inventory ... Dec. 31 = 37,5000... Jan 1 = 40,000 Finished good inventory, Jan 1 (10,000 units @ $21 per unit) .. Dec. 31 = ? .... Jan 1. = 210,000 purchases of direct materials during year ... Dec. 31 = 330,000 Direct labor costs assigned to production ... Dec. 31 = 375,000 manufacturing overhead ... Dec 31 = 637,5000 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 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 current 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.Explanation / Answer
a.
cost of goods manufactured
direct materials
335,000
diet labor
375,000
overhead
637,500
manufacturing costs
1,347,500
Beginning WIP
40,000
1,387,500
ending wip
37,500
cost of goods manufactured
1,350,000
supporting schedule for direct materials
beginning inventory
25,000
purchases
330,000
355,000
ending inventory
20,000
material used in production
335,000
b.
average cost per unit of production
1,350,000/45,000=
30.00
c.
cost of goods sold
beginning inventory
210000
(10,000*21)
cost of goods manufactured
1,350,000
goods available for sale
1,560,000
ending inventory
450000
(15,000*30)
cost of goods sold
1,110,000
d.
15,000*30=
450000
a.
cost of goods manufactured
direct materials
335,000
diet labor
375,000
overhead
637,500
manufacturing costs
1,347,500
Beginning WIP
40,000
1,387,500
ending wip
37,500
cost of goods manufactured
1,350,000
supporting schedule for direct materials
beginning inventory
25,000
purchases
330,000
355,000
ending inventory
20,000
material used in production
335,000
b.
average cost per unit of production
1,350,000/45,000=
30.00
c.
cost of goods sold
beginning inventory
210000
(10,000*21)
cost of goods manufactured
1,350,000
goods available for sale
1,560,000
ending inventory
450000
(15,000*30)
cost of goods sold
1,110,000
d.
15,000*30=
450000
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