Problem

The accounting records of Maine Products Company include the following information relatin...

The accounting records of Maine Products Company include the following information relating to the current year:

 

Dec. 31

Jan. 1

Materials inventory 

 $ 22,000

$ 30,000

Work in process inventory 

39,000

   39,000

Finished goods inventory Jan. 1 (8.000 units @ $22 per unit) 

    ?

176,000

Purchases of direct materials during year 

290,000

 

Direct labor costs assigned to production 

350,000

 

Manufacturing overhead assigned to production 

552,000

 

The company manufactures a single product: during the current year. 60,000 units were manufactured and 50,000 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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