s &FinSan; Diego Office Equipment manufactures and sels metal sheling I began op
ID: 2468597 • Letter: S
Question
s &FinSan; Diego Office Equipment manufactures and sels metal sheling I began operations on January 1,2014 operations on January 1, 2014. Click the icon to view the costs incurred during 2014)(Click the icon to view the inventory data ) Revenues in 2014 were $400,400. The selling price per unit and the purchase price per pound of direct materials were stable throughout ) (Click the icon to view the c osts incurred during 2014 ) (%) (Click the icon to view the inventory data ) the year. The companys ending inventory of finished goods is carried at the he year. The company's ending inventory of finished goods is caried at the average unit manufacturing cost for 2014. Finished-goods E inventory at December 31, 2014, was $20,970. a rough i k you f Requirements 1. Calculate direct materials inventory, total cost, December 31, 2014 2. Calculate finished-goods inventory, total units, December 31, 2014 3. Calculate selling price in 2014 4. Calculate operating income for 2014 ankrate Cal age Pay ge 0.7 2,200 1,540 Requirement 2. Calculate finished-goods inventory, total units, December 31, 2014 remo ecomBefore we calculate the units for ending finished goods, we will frst calculate the total cost of goods manufactured. (Only complete Costs E the necessary answer boxes.) Manufacturing costs for 100,000 units Variable Fixed Total material elemen will vary cost w ade Direct materials used Direct manufacturing labor costs Plant energy costs Indirect manufacturing labor costs Other indirect manufacturing costs Cost of goods manufactured Enter any number in the edit fields, then click Check Answer Save Clear All Check Answer 4 parts remaining nkrate. age Payment Calculator What Will Your Payment Be? Answer QuestionsExplanation / Answer
Hi Dear Student !
1)
Yes, You are doing this correctly see we purchased Direct Material of 200000 Units for $140000 for arriving at per unit cost we will use following formula:-
Total Cost for Purchase/No of Units Purchased
140000/200000= $0.70 per unit
So Value of the closing stock is 2200*0.70= $1540
Total Cost to purchase total units of 202200*0.70= 141540
Note- It is assumed that the Cost given of $140000 is for 200000 units only. Amount for closing stock is not mentioned in $140000.
2)
Balance Value of Finished goods is $20970 which is calculated on basis of Average total cost of goods manufacture.
Cost of goods Mfr. (Refer Photo): $ 233000
Cost of Goods Mfr. Per Unit: 233000/100000= $ 2.33
So Remaining Units Of Finished Goods:- 20970/2.33= 9000 Units
3)
Sale Price per unit:- Total Sales Value/ No of units Sold
Sales Value:- $400400
Units Sold:- Units Produced -Closing Stock of Finished Goods
100000-9000= 91000 Units
Sale Price= 400400/91000= $4.40
4)
It can be calculated with two types
A) Operating Income:- Revenue-Cost of goods Manufacture-Other Operating Expenditures+Closing Stock of Finished Goods
400400-233000-223000+20970= ($34630)
It results into Loss of $34630
B) Operating Income:- Revenue-Cost of goods Manufacture+Closing Stock of Finished Goods
400400-233000+20970= $188370
I hope it helps you. Pleasure Teaching you.
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