Question
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: Sales (budgeted) Finished goods inventory, beginning of quarter Finished goods inventory, end of quarter Cost of finished goods manufactured (budgeted manufacturing costs are $30 per unit) Units 135,000 34,200 25,200 Dollars $7,820,000 1,346,400 ? ? 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 first must compute the average cost of units available for sale.) d. Cost of goods sold. e. Gross profit ? Frowren Domestic used the average cost method of pricing its inventory of finished goods.
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