Question

Allyson Ashley makes jet skis. During the year, Allyson manufactured 90,000 jet skis. Finished goods inventory had the following units:
January 1 18,000
December 31 18,000
Required:

1. How many jet skis did Allyson sell during the year?
___________ units

2. If each jet ski had a product cost of $2,600, what was the cost of goods sold last year?
$__________

Answer 1

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

During the year, Allyson manufactured 90,000 jet skis. Finished goods inventory had the following units:

January 1: 18,000

December 31: 18,000

A) We need to use the following formula:

Units sold= beginning inventory + production - ending inventory

Units sold= 18,000 + 90,000 - 18,000= 90,000 units

B) Unitary cost= $2,600

Cost of goods sold= sold units* unitary cost

COGS= 90,000*2,600= $234,000,000