Purchase Solution

Calculation of Ending Finished Goods Inventory

Not what you're looking for?

Ask Custom Question

Answer questions on Comparison of Variable Costing and Absorption Costing attached. Please show work.

Youngstown Manufacturing and Chan Manufacturing Company.

Attachments
Purchase this Solution
Solution Summary

Response provides the steps of calculation of ending finished goods inventory under absorption costing.

Solution Preview

Q1.
Calculation of Ending finished goods inventory under Absorption costing
1) Step 1 : We will calculate the Manufacturing costs for the total unit production of 1600 units

Cost of Goods Sold= Direct Labor + Direct Materials used + Variable manufacturing overhead+Fixed Manufacturing Overhead
=4200+3500+300+2200
$10,200.00

2) Step 2 : Calculate the Ending finished goods inventory
Cost of 1600 units =$8000 (As calculated in Step 1)
Cost per unit= 10200/1600=$6.38 per unit

Cost of ending inventory of 200 ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • The following information pertains to the Cannady Corporation

    Calculation of Cost Of Goods Sold Beginning Finished Goods Inventory $180,000 Add: Cost of Goods manufactured $1,220,000 Goods available for sale $1,400,000 Less: Ending Finished Goods inventory

  • Kepler's Fudge Factory

    The total COGM is then transferred to finished goods inventory for further calculation. The amount in finished goods is not used to calculate the COGM. As shown above, we calculate the amount of materials used.

  • Managerial Accounting of Sarter Corporation

    Beginning Inventory Ending Inventory Finished goods (units) 70,000 20,000 Raw material (grams) 50,000 60,000 Each unit of finished goods requires 3 grams of raw material.

  • Total manufacturing cost and cost of goods sold

    of goods manufactured = 145,000+510,000-171,000 = $484,000 The finished goods are transferred to finished goods inventory from where they are sold Cost of goods sold = Opening Finished goods inventory + cost of goods manufactured - ending finished

  • Detailed Cost Accounting Calculations

    Cost of goods sold = Beginning FG inventory + cost of goods manufactured - ending FG inventory 672,000 + 6,758,400 - 1,280,000 = 6,150,400 This solution provides a detailed, step by step calculation of the given accounting problems.

  • Process Costing and Allocation

    What was the cost of the ending work in process inventory? b. Assuming 14,000 equivalent units of product were transferred from work in process inventory to finished goods inventory, determine the cost of the ending work in process inventory.

  • Manufacturing Company T Accounts

    Ending Finished Goods Inventory 12,000 19,000 The current year's predetermined overhead rate is 110 percent of direct labor cost.

  • Equivalent units of production for materials and conversion

    in Process Inventory as to conversion costs, and the cost of goods transferred to Finished Goods Inventory.

  • Karlana Corporation: Compute cost of goods manufactured

    , beginning $28 Work in process inventory, ending $29 Finished goods inventory, beginning $123 Finished goods inventory, ending $139 The cost of goods manufactured (finished) for the year (in thousands of dollars) was: a. $569 b.$511

View More Related Solutions