Managerial Accounting: E16-7A The accounting records of Idaho Paper Company

Managerial Accounting Exercise 16.7 A The accounting records of Idaho Paper Company include the following information relating to the current year: Dec. 31 Jan. 1 Materials inventory 20,000 25,000 Work in process inventory 37,500 40,000 Finished goods inventory, Jan. 1 (10,000 units @ 21 per unit) ? 210,000 Purchases of direct material during year 330,000 Direct labor costs assigned to production 375,000 Manufacturing overhead 637,500 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.
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