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

Question:

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

Dec. 31Jan. 1
Inventory of materials$24,000$20,000
Inventory of work in process8,00012,000
Inventory of finished goods90,00080,000
Direct materials used210,000
Direct labor112,000
Selling expenses170,000
General and administrative expenses140,000

The Overhead assigned to production was $192,000.

a. Prepare a schedule of the cost of finished goods manufactured.

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?

Finished Goods Inventory:

Finished Goods inventory is one of the inventory accounts maintained by manufacturing companies. The account increases on the debit side when goods are transferred from work-in-process inventory and decreases on the credit side when the cost of goods sold is recorded.

Answer and Explanation: 1

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a. In the schedule, we add the current manufacturing costs and adjust that for changes in work-in-process inventory to find the cost of finished...

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Finished Goods Inventory: Calculation & Formula

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Chapter 2 / Lesson 9
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Learn the definition of finished goods inventory and understand how it is calculated. Discover the finished goods inventory formula and see how it is used.


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