Frowren Domestic used the average cost method of pricing its inventory of finished goods.

Instructions
Compute the following budgeted quantities or dollar amounts:
a. Planned production of finished goods (in units).
b. Cost of finished goods manufactured.
c. Ending finished goods inventory. (Remember that in using the average cost method you first must compute the average cost of units available for sale.)
d. Cost of goodssold.

Transcribed Image Text:

Units Dollars 200,000 $8,000,000 750,000 Sales (budgeted) Finished goods inventory, beginning of quarter Finished goods inventory, end of quarter Cost of finished goods manufactured (assume a 30,000 .25,000 budgeted manufacturing cost of $26 per unit)- ·-·-···· ..