TURBO HOMEWORK Turbo Company, a manufacturing firm, produces a single product. Assume all raw materials are direct materials (no indirect materials). The following information has been taken from the company's production, sales, and cost records for the just completed year: TURBO COMPANY 30,000 ? ? $650,000 Production in units Sales in units Ending finished goods inventory in units Sales in dollars Costs: Advertising Direct labor Indirect labor Raw materials purchased Building rent (80% Factory) Utilities, factory Royalty paid for use of patent, $1 per unit produced (Classify as MOH) Maintenance, factory Rent for special production equipment, $6,000 per year plus $0.10 per unit produced Selling and administrative salaries Other factory overhead costs Other selling and administrative expenses $50,000 80,000 60,000 160,000 50,000 35,000 ? 25,000 ? 140,000 11,000 20,000 Inventories: Raw materials Work in progress Finished goods Beginning End of of Year Year $20,000 $10,000 30,000 40,000 0 7 Selling price per unit $25 Check figure: (1) Cost of goods manufactured $450,000 The finished goods inventory is being carried at the average unit production cost for the year. The selling price of the product is $25 per unit. 1. Compute the cost of goods manufactured for the year. 2. Compute the following: a. The number of units in the finished goods inventory at the end of the year. b. The cost of the units in the finished goods inventory at the end of the year. 3. Prepare an income statement for the year