The following information related to Unipoly plc, a manufacturer of can-openers, for the year ended 31 December
Question:
The following information related to Unipoly plc, a manufacturer of can-openers, for the year ended 31 December 2017.
€
Direct materials cost of can-opener per unit 1 Direct labour cost of can-opener per unit 1 Direct expenses cost of can-opener per unit 1 Production overheads per year 600,000 Administration overheads per year 200,000 Selling overheads per year 300,000 Interest payments per year 100,000 There was no finished goods inventory at the start of the year and no work in progress. There were 250,000 units in finished goods at the year-end. The normal annual level of production is 750,000 can-openers. However, in the year ended 31 December 2017, only 450,000 were produced because of a labour dispute.
Requirement Calculate the cost of finished goods at 31 December 2017 in accordance with IAS 2 Inventories.
Step by Step Answer:
International Financial Accounting And Reporting
ISBN: 9781912350025
6th Edition
Authors: Ciaran Connolly