Peasant Company produces and sells only one product. For the next year ending May 31, 19X2, management expects to sell 96,000 units at an $80 sales price per unit. There are 7,000 units remaining in finished goods inventory at the end of the current year at a cost of $315,000.

Management wants to have 10,000 units in finished goods inventory at the end of the period.

The company wishes to maintain the end of period level of partially completed units.

Each unit requires eight gallons of direct material. Only one direct material is used; it costs $2 per gallon. Two hours of direct labor are required before completion of each unit;

the cost of direct labor is $10 per hour. Factory overhead is applied on the basis of $6 per direct labor-hour. Budgeted marketing costs at this level are $1,200,000; administrative costs are expected to be $600,000.

Required (Chapter 15 Appendix reviews inventory costing.):

a, Prepare a budgeted cost of goods manufactured statement and statement of income using FIFO costing.

b. Assume that the company uses LIFO costing instead; determine the ending finished goods inventory.

c. Assume that the company uses weighted-average costing instead; determine the ending finished good inventory. Round to two decimal points.