1. Given for Flexible Products, Inc.: The following “T” A/C’s show December 31,
ID: 2444274 • Letter: 1
Question
1. Given for Flexible Products, Inc.:The following “T” A/C’s show December 31, 2001ending balances:
Work-in-process $41,000 Finishedproduct $ 148,000
January 31, 2002 balances are:
Work-in-Process (WIP) $ 47,000 (dr.)
Finished Goods (F/G) 152,000 (dr.)
The Income Statement showed Sales of 309,000 and Gross Margin
of 205,000.
A. Based on the above information, what was the Cost Of GoodsManufactured? $ _________
B. Cost of Goods Available for Sale was $225,000 and
Beginning Finished Gds Inventory was $25,000.
If 40,000 units were produced, what was the
unit cost of production ?
(independent from A. above) $ _________
Explanation / Answer
COST OF GOODS SOLD
104,000
152,000
COST OF GOODS MANUFACTURED
108,000*
Sales $309,000 less: Cost of goods sold ($104,000) Gross margin(given) $205,000 ($3,09,000 -$2,05,000) A.COST OF GOODS SOLD
104,000
less: Finished goods inventory jan1 (148,000) Add: Finished goods inventory Dec.31152,000
COST OF GOODS MANUFACTURED
108,000*
B. Unit cost of production = $225,000 - $25,000 / 4000 = $200.000 / 4000 = $5Related Questions
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