bgpopper
Mar 3, 2009, 01:37 PM
I am given this information in the problem:
Production in units 30,000
Sales In Units ?
Ending Finished Goods Inventory In Units ?
Sales In Dollars $650,000
Costs:
Advertising $50,000
Direct Labor $80,000
Indirect Labor $60,000
Raw Materials Purchased $160,000
Building Rent (Production uses 80% of the space, administrative and sales uses the rest) $50,000
Utilities, Factory $35,000
Royalty Paid for use of production patent $1 per unit produced ?
Maintenance, Factory $25,000
Rent for special production equipment, $6,000 per year plus $.10 per unit produced ?
Selling and administrative salaries $140,000
Other factory overhead costs $11,000
Other selling and administrative expenses $20,000
Inventories:
Raw Materials: (Beginning of Year: $20,000) (End of Year: $10,000)
Work In Process ( Beginning of Year: $30,000) (End of Year: $40,000)
Finished Goods (Beginning of Year: $0) (End of Year: ?)
The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit.
I came up with the royalty paid for use of production patent is $30,000 (30,000 units x $1)
I also came up with the rent for special production equipment $9,000 (30,000 x $.10 + $6,000)
Please show me the way to come up with the Sales in Units, Ending Finished Goods In Units, and Ending Finished Goods Inventory in dollars. I think this problem is pretty simple and I am just looking way too much into it.
Production in units 30,000
Sales In Units ?
Ending Finished Goods Inventory In Units ?
Sales In Dollars $650,000
Costs:
Advertising $50,000
Direct Labor $80,000
Indirect Labor $60,000
Raw Materials Purchased $160,000
Building Rent (Production uses 80% of the space, administrative and sales uses the rest) $50,000
Utilities, Factory $35,000
Royalty Paid for use of production patent $1 per unit produced ?
Maintenance, Factory $25,000
Rent for special production equipment, $6,000 per year plus $.10 per unit produced ?
Selling and administrative salaries $140,000
Other factory overhead costs $11,000
Other selling and administrative expenses $20,000
Inventories:
Raw Materials: (Beginning of Year: $20,000) (End of Year: $10,000)
Work In Process ( Beginning of Year: $30,000) (End of Year: $40,000)
Finished Goods (Beginning of Year: $0) (End of Year: ?)
The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit.
I came up with the royalty paid for use of production patent is $30,000 (30,000 units x $1)
I also came up with the rent for special production equipment $9,000 (30,000 x $.10 + $6,000)
Please show me the way to come up with the Sales in Units, Ending Finished Goods In Units, and Ending Finished Goods Inventory in dollars. I think this problem is pretty simple and I am just looking way too much into it.