3. Before an income statement can be prepared, the cost of the 8,000 bat-
teries in the ending finished goods inventory must be determined. Alto-
gether, the company produced 40,000 batteries during the quarter;
thus, the production cost per battery would be:
Cost of goods manufactured = $780,000 =$19.50 per unit
Batteries produced during the quarter 40,000 units
Since 8,000 batteries (40,000 – 32,000 = 8,000) were in the finished
goods inventory at the end of the quarter, the total cost of this inven-
tory would be:
Bạn đang xem 3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
