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Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
Edition 2ISBN: 978-0077274993 Exercise 35
Finding Unknowns
Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, Year 1, and its costs incurred during the year include these:
On December 31, Year 1, direct materials inventory consisted of 3,000 pounds of material. Production in that year was 16,000 mugs. All prices and unit variable costs remained constant during the year. Revenues for year 1 were $49,000. Finished goods inventory was $4,070 on December 31, Year 1. Each finished mug requires 0.4 pounds of material.
Required
Compute the following:
a. Direct materials inventory cost, December 31, Year 1.
b. Finished goods ending inventory in units on December 31, Year 1.
c. Selling price per unit.
d. Operating profit for year 1.
Mary's Mugs produces and sells various types of ceramic mugs. The business began operations on January 1, Year 1, and its costs incurred during the year include these:
On December 31, Year 1, direct materials inventory consisted of 3,000 pounds of material. Production in that year was 16,000 mugs. All prices and unit variable costs remained constant during the year. Revenues for year 1 were $49,000. Finished goods inventory was $4,070 on December 31, Year 1. Each finished mug requires 0.4 pounds of material.
Required
Compute the following:
a. Direct materials inventory cost, December 31, Year 1.
b. Finished goods ending inventory in units on December 31, Year 1.
c. Selling price per unit.
d. Operating profit for year 1.
Explanation
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Verified
a.
Calculating direct materials invento...
Fundamentals of Cost Accounting 2nd Edition by William Lanen, Carolyn Wells, Michael Maher
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