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Frowren Domestic manufactures and sells a single product. In preparing its master budget for the current quarter, the companys controller has assembled the following information:
Frowren Domestic manufactures and sells a single product. In preparing its master budget for the current quarter, the companys controller has assembled the following information: Units Dollars Sales (budgeted) 200,000 $8,000,000 Finished goods inventory, beginning of quarter 30,000 750,000 Finished goods inventory, end of quarter 25,000 ? Cost of finished goods manufactured (assume a Budgeted manufacturing cost of $26 per unit) ? ? 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 must first compute the average cost of units available for sale.) d. Cost of goods sold
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