thank you I will give a good review! just need help with 10 A & B
10) Connect gives a "total product cost" per unit that is used to calculate the ending inventory value and cost of goods sold. This per unit cost includes fixed overhead costs assuming the quarter's original production and sales levels. This average will change because of the one-time sale. Zigby Manufacturing uses weighted average costing for its inventory. Because Zigby does not have any Work-In-Process inventory, we can assume that all production costs flow to finished goods and then to cost of goods sold. a) Follow the directions below the table to calculate the revised weighted average cost per unit. ZIGBY MANUFACTURING Weighted Average Cost per Finished Goods Inventory Costs March 31 Finished Goods Inventory (connect) 349,440 Raw Material used in production (calculated in 9) 715,026 Budgeted Direct Labor costs (calculated in 4 including wage premium) 739,770 Budgeted Overhead Costs (calculated in 5.Both variable and fixed) 18,120 Total Costs of Finished Goods available for use sale (a) Units: Units in 3/31 Finished Goods Inventory (connect) Units produced during quarter (from 2) Total units available for sale (b) Weighted-Average Cost per unit (a)/(b) show 2 decimals b) Use the weighted average cost per unit to allocate costs between 6/30 finished goods inventory and COGS. ZIGBY MANUFACTURING Finished Goods Inventory Allocation of Costs FG Inventory at Sold Total 6/30 Accounted for Units Weighted-average cost per unit Allocated costsZIGBY MANUFACTURING Weighted Average Cost per Raw Material unit Costs: March 31 Raw Material Balance (connect) 107 200 Raw Material purchases (total from 3 net of discount) 607,826 Total Costs available for use in production (a) $715,026 Units: Units in 3/31 Raw Material inventory (connect) 5,360 Units purchased during quarter (from 3) 30,490 Total units available for production (b) 35 850 Weighted-Average Cost per unit (a)/(b) show 2 decimals $19.94 b) Use the weighted average cost per unit to calculate the June 30 raw material inventory balance and the cost of direct material used in production. Use the notes below the table for assistance ZIGBY MANUFACTURING Raw Material Inventory Allocation of Costs Inventory at Used in Total 6/30 Production Accounted for Units 4,200 10.410 14 610 Weighted-average cost per unit $19.94 $19.94 $19.94 Allocated costs $83, 748 $207 575.40 $291 323.40