Question

please do on word document

Q1

The following selected account balances for the year ended December 31 are provided for Amita Company:

Purchases of raw materials                                                                                                                   $260,000

Direct labour                                                                                                                                                           65,000

Maintenance, factory                                                                                                                                         74,000

Selling and administrative salaries                                                                                                              179,000

Depreciation, factory equipment                                                                                                          110,000

Cleaning supplies                                                                                                                                                  6,000

Sales commissions                                                                                            350,000

Utilities, factory building                                                                                     52,000

Rent, factory                                                                                                                                                           90,000

Depreciation, sales equipment                                                                             80,000

Insurance, factory equipment                                                                                                                             8,000

Advertising expense                                                                                          300,000

In addition, you have the following information about inventories during the year:

Increase in raw materials        $10,000

Decrease in work in process   $15,000

Beginning finished goods       $30,000           (1,000 units)

Ending finished goods            $?                    (3,400 units)

Equivalent units produced      $?                    (27,600 units)

Cleaning supplies are in the factory.
Assume the company uses FIFO.

Required:

(a.) Calculate the cost of the 27,600 equivalent units that were produced during the year.
(b.) Calculate the cost of the ending finished goods inventory.
(c.) Calculate the cost of goods sold.

Answer 1

Solution:-

(a) Calculate the cost of the 27,600 equivalent units that were produced during the year:-

(b.) Calculate the cost of the ending finished goods inventory:-

(c) Calculate the cost of goods sold:-

Please Rate and comment. Happy learning.