Question

The accounting records of NuTronics, Inc., include the following information for the year ended December 31. Dec. 31 Jan. 1 Inventory of materials......................................... $24,000 $20,000 Inventory of work in process................................... 8,000 12,000 Inventory of finished goods.................................... 90,000 80,000 Direct materials used.......................................... 210,000 Direct labor.................................................. 120,000 Selling expenses............................................. 170,000 General and administrative expenses........................... 140,000 Overhead assigned to production was $192,000. a. Prepare a schedule of the cost of finished goods manufactured. (Not all of the data given are used in this schedule.) b. Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

Answer 1

Answer:

Cost of finished goods manufactured = $526,000

Average cost = 26.30 per unit

Explanation:

The computation of given question is shown below:-

A. Cost of finished goods manufactured

Work in progress                                                                      $12,000

Manufacturing costs assigned to production:

Direct materials used                                           $210,000

Direct labor                                                           $120,000

Manufacturing overhead                                      $192,000

Total manufacturing costs                                                        $522,000

Total cost of all goods                                                               $534,000

Less: Work in process inventory 31 December                        $8,000

Cost of finished goods manufactured                                     $526,000

B. Average cost = Cost of finished goods manufactured ÷ Manufactured unit

=  $526,000 ÷ $20,000

= 26.30 per unit