Akeley 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

The company uses the first-in, first-out method to report 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. Finished goods inventory, March 31. (Remember to use the first-in, first-out method in pricing the inventory.)
d. Cost of goods sold.

Transcribed Image Text:

Sales (budgeted) ... ... Finished goods inventory, January 1 (actual) Finished goods inventory, March 31 (budgeted) Cost of finished goods manufactured (budgeted manufacturing costs are $24 per unit) ..... .... Units 180,000 22,000 16,000 ? Dollars 7,200,000 550,000 ? ?