Problem: Harmony Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information:
|
Units |
Dollars |
| Sales (budgeted) |
150,000 |
$ 12,150,000.00 |
| Finished goods inventory, Jan. 1 (actual) |
30,000 |
$ 1,080,000.00 |
| Finished goods inventory, Mar. 31 (budgeted) |
20,000 |
? |
| Cost of finished goods manufactured (budgeted manufacturing cost is $39 per unit) |
? |
? |
The company uses the first-in, first-out method of pricing its inventory of finished goods.
Instructions:
Compute the following budgeted quantities or dollar amounts:
1. Planned production of finished goods (in units)
2. Cost of finished goods manufactured.
3. Finished goods inventory, March 31. (Remember to u se the first-in, first-out method in pricing the inventory)
4. Cost of goods sold.