Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31

Question

Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,100 heels at a cost of $16 each in raw materials inventory. During 2011, the company purchased 39,000 additional heels at $16 each and manufactured 16,400 pairs of boots.

Determine the unit and dollar amounts of raw materials inventory in heels at December 31, 2011.

Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,100 heels at a cost of $16 each in raw materials inventory. During 2011, the company purchased 39,000 additional heels at $16 each and manufactured 16,400 pairs of boots.

Explanation / Answer

Initial Inventory = 1,100 units

Heels purchased = 39,000 units

Finished Goods = 16,400 pair of shoes = 32,800 units of heels used

Inventories at the end of the period

= 39,000 + 1,100 - 32,800

= 7,300 units

Inventories value = 7,300 * 16 = $ 1,168,000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.