Problem 23.1A

Renfrow International manufactures and sells a single product. In preparing its master budget for the current quarte, the company's controller has assembled the following information:

	Units	Dollars
Sales (budgeted)	150,000	$7,500,000
Finished goods inventory, beginning of quarter	38,000	975,000
Finished goods inventory, end of quarter	28,000	??
Cost of finished goods manufactured (assume a budgeted manufacturing cost of $28 per unit)	??	??

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 avergae cost of units available for sale.)

D. Cost of goods sold.