A company manufactures and sells a single product and charges or allocates manufacturing overhead from the units produced. The initial 2018 budget projected the following costs for a production of 20,000 units:

Raw materials used Direct - labor Manufacturing overhead

200 000 $ 240 000 180 000

As of January 1, 2018, there was no work-in-process inventory, while raw materials and supplies inventory was $32,000 and finished goods inventory at the beginning of the year consisted of 2,000 units that cost $30 each.

The following is a summary statement of transactions for fiscal year 2018.

1. Purchases of raw materials and supplies: $236,400.

2. Summary of Requisitions:

Raw materials

231 615 $ 3. Summary of Wage Journal:

Direct labor Indirect labour Production planning Storekeeper (in charge of purchasing)

234 080 $ 30410 19400 11 200

4. Other manufacturing overhead:

Depreciation - Plant Depreciation - Machinery or equipment Lighting and power Miscellaneous

10 000 $ 22 000 8 430 8 565

During the year, 19,200 units were completed and transferred to the warehouse; there was no product in process at year-end. Planned and achieved sales, at a unit price of $45, were 19,500 units. Selling and administrative expenses for the year were $122,500.

Work to be done

1) Calculate for fiscal year 2018 the manufacturing cost (or actual cost of goods sold) and the manufacturing cost per unit. 2) Calculate the cost of ending inventory. 3) Finally prepare the income statement for fiscal year 2018.