PROBLEM 23.1A Budgeting Production, Inventories, and Cost of Sales Renfrow International manufactures and sells a single product. In preparing its master budget for the current quarter, the company's controller has assembled the following information: Units Dollars Sales (budgeted)........................................... Finished goods inventory, beginning of quarter .... Finished goods inventory, end of quarter ............ Cost of finished goods manufactured (budgeted manufacturing costs are $40 per unit) ....... 180,000 45,600 33,600 $9,840,000 1,396,800 Renfrow International 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. e. Gross profit. Citation