I prepared a schedule of cost of goods manufactured for the end of the year and that total was 870,000

The book gives production units of 29,000 and selling price per unit is $50.00
It doesn't give sales in units nor finished goods at beg, or at end.

What is the formula to find number of units in finished goods at end of year and the cost of the units in the finished goods inventory at the end of the year?

Thank you.

Quote:

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Originally Posted by npaul

I prepared a schedule of cost of goods manufactured for the end of the year and that total was 870,000

the book gives production units of 29,000 and selling price per unit is $50.00
it doesnt give sales in units nor finished goods at beg, or at end.

what is the formula to find number of units in finished goods at end of year and the cost of the units in the finished goods inventory at the end of the year?

Thank you.

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It would have helped if you had posted the statement of the cost of goods manufactured. However, as a guide:

1. Cost of goods manufactured/number of units produced = per unit cost of production for the period.

2. Divide the cost of ending inventory of finished goods determined in 1 above to get the units in ending inventory

3. Opening inventory of finished goods can not be easily determined without further information. If the cost of production has not changed, then divide the cost of opening inventory by the unit cost of production to get the number of units produced. However, it might be possible:

(a) If sales value is given, the divide sales value by the unit sales price to get the number of units sold
(b) Add the number of units sold with the number in ending inventory to get units available for sale
(c) Deduct (b) from the units produced to get beginning inventory.

I hope this helps

Quote:

---

Originally Posted by npaul

I prepared a schedule of cost of goods manufactured for the end of the year and that total was 870,000

the book gives production units of 29,000 and selling price per unit is $50.00
it doesnt give sales in units nor finished goods at beg, or at end.

what is the formula to find number of units in finished goods at end of year and the cost of the units in the finished goods inventory at the end of the year?

Thank you.

---

The information provided is not sufficient.

While it is not appropriate to provide solution, I can just guide you as to how to go about it:

1. Calculate current cost of production pr unit.
2. Calculate units in ending inventory by dividing the cost of inventory with unit cost in 1.
3. Value of beginning inventory can be calculated by adding cost of ending inventory to the cost of sales and deducting it from the cost of goods manufactured
4. Number of units sold can be calculated bu dividing the sales by unit sales price.

Try it and post your work