Question

The accounting records of NuTronics, Inc., include the following information for the year ended December 31.

	Dec. 31				Jan. 1
Inventory of materials		$	24,000			$	20,000
Inventory of work in process			8,000				12,000
Inventory of finished goods			90,000				80,000
Direct materials used			210,000
Direct labor			112,000
Selling expenses			170,000
General and administrative expenses			140,000

Overhead assigned to production was $192,000.

a. Prepare a schedule of the cost of finished goods manufactured. (Not all of the data given above are used in this schedule.)

b. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

  

Answer 1

a)		Cost of Finished goods manufactured
	Work in process inventory January 1,						12,000
	Manufacturing cost assigned to production
	Cost of direct materials used					210,000
	Direct labor cost					112,000
	overhead applied to production					192,000
	total manufacturing costs:						514,000
	Total cost of all WIP during the year						526,000
	less:work in process inventory on dec31,						8,000
	Cost of finished goods manufactured						518,000
b)	Average per unit cost of manufacturing
	518,000/20,000
	25.9	per unit