The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $50 per unit. Required: 1. Prepare a schedule of cost of goods manufactured for the year. 2. Compute the following: The number of units in the finished goods inventory at the end of the year. a. b. The cost of the units in the finished goods inventory at the end of the year. 3. Prepare an income statement for the year.
The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $50 per unit. Required: 1. Prepare a schedule of cost of goods manufactured for the year. 2. Compute the following: The number of units in the finished goods inventory at the end of the year. a. b. The cost of the units in the finished goods inventory at the end of the year. 3. Prepare an income statement for the year.
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter20: Variable Costing For Management Analysis
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![PROBLEM 2–24 Income Statement; Schedule of Cost of Goods Manufactured [LO2, LO3, LO4, LO5]
Visic Corporation, a manufacturing company, produces a single product. The following information
has been taken from the company's production, sales, and cost records for the just completed year.
eXcel
Production in units
29,000
Sales in units
?
Ending finished goods inventory in units
Sales in dollars
?
$ 1,300,000
Costs:
$ 90,000
$ 480,000
$ 300,000
$ 380,000
Direct labor.
Raw materials purchased
Manufacturing overhead
Selling and administrative expenses
Beginning of
the Year
End of
the Year
Inventories:
Raw materials
Work in process
Finished goods
$ 20,000
$ 50,000
$30,000
$ 40,000
$0
?
Managerial Accounting and Cost Concepts
71
The finished goods inventory is being carried at the average unit production cost for the year.
The selling price of the product is $50 per unit.
Required:
1. Prepare a schedule of cost of goods manufactured for the year.
Compute the following:
The number of units in the finished goods inventory at the end of the year.
b.
2.
a.
The cost of the units in the finished goods inventory at the end of the year.
3. Prepare an income statement for the year.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc2d22eda-5edd-48ad-9b20-1e4fb4c98fe1%2F9b3f16f4-c2bd-4574-b9a7-1fb6d11ccfc0%2Fjwnqfuv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROBLEM 2–24 Income Statement; Schedule of Cost of Goods Manufactured [LO2, LO3, LO4, LO5]
Visic Corporation, a manufacturing company, produces a single product. The following information
has been taken from the company's production, sales, and cost records for the just completed year.
eXcel
Production in units
29,000
Sales in units
?
Ending finished goods inventory in units
Sales in dollars
?
$ 1,300,000
Costs:
$ 90,000
$ 480,000
$ 300,000
$ 380,000
Direct labor.
Raw materials purchased
Manufacturing overhead
Selling and administrative expenses
Beginning of
the Year
End of
the Year
Inventories:
Raw materials
Work in process
Finished goods
$ 20,000
$ 50,000
$30,000
$ 40,000
$0
?
Managerial Accounting and Cost Concepts
71
The finished goods inventory is being carried at the average unit production cost for the year.
The selling price of the product is $50 per unit.
Required:
1. Prepare a schedule of cost of goods manufactured for the year.
Compute the following:
The number of units in the finished goods inventory at the end of the year.
b.
2.
a.
The cost of the units in the finished goods inventory at the end of the year.
3. Prepare an income statement for the year.
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