Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information. Units 160,000 20,000 32,000 Dollars Sales (budgeted) Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) $6,400,000 500,000 ? ? ? The company uses the first-in, first-out method to report its inventory of finished goods. Required: a. Compute the planned production of finished goods (in units). b. Compute the cost of finished goods manufactured. c. Compute the finished goods inventory, March 31. d. Compute the cost of goods sold.
Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information. Units 160,000 20,000 32,000 Dollars Sales (budgeted) Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) $6,400,000 500,000 ? ? ? The company uses the first-in, first-out method to report its inventory of finished goods. Required: a. Compute the planned production of finished goods (in units). b. Compute the cost of finished goods manufactured. c. Compute the finished goods inventory, March 31. d. Compute the cost of goods sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant
has assembled the following information.
Units
Dollars
Sales (budgeted)
Finished goods inventory, January 1 (actual)
Finished goods inventory, March 31 (budgeted)
Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit)
160,000
20,000
32,000
?
$6,400,000
500,000
?
The company uses the first-in, first-out method to report its inventory of finished goods.
Required:
a. Compute the planned production of finished goods (in units).
b. Compute the cost of finished goods manufactured.
c. Compute the finished goods inventory, March 31.
d. Compute the cost of goods sold.
Planned production of finished goods
160,000 units
а.
b.
Cost of finished goods manufactured
Ending finished goods inventory
$
32,000
C.
d.
Cost of goods sold
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