Question

The following information pertains to Alleigh’s Mannequins:

                 Manufacturing costs                    P1,500,000

                 Units manufactured                     30,000

                 Units sold                                     29,500 units sold for P85 per unit

                 Beginning inventory                    0 units

What is the amount of ending finished goods inventory?

Answer 1

The depicted information pertains to Alleigh’s Mannequins are:

                 Manufacturing costs                    P1,500,000

                 Units manufactured                     30,000

                 Units sold                                     29,500 units sold for P85 per unit

                 Beginning inventory                    0 units

Unit price = P1,500,000/30,000, =P50,

Here Units sold is =29500 unitsxP85, = P2507500

So, What is the amount of ending finished goods inventory?

Remaining 500 units =(30,000-29,500)

So the amount of finished goods inventory base on cost price is 500 units x P50 ,is = P25,000

The amount of finished goods inventoory based on selling price is 500 units x P85, is =P42,500