On January 1, 2021, CMA Company was established to manufacture a single product. The company’s production and sales records for 2021-2023 are made available below Production Sales Units Cost Units Cost 2021 300,000 1,350,000 195,000 1,823,250 2022 325,000 1,690,000 295,000 2,330,500 2023 290,000 1,653,000 245,000 2,082,500 All units produced in a year are assigned the same average cost. a. Compute for the inventory beginning for 2023 using FIFO cost flow b. Compute for the inventory ending for 2023 using FIFO cost flow c. Compute for the cost of goods sold in 2023 using FIFO cost flow
On January 1, 2021, CMA Company was established to manufacture a single product. The company’s production and sales records for 2021-2023 are made available below Production Sales Units Cost Units Cost 2021 300,000 1,350,000 195,000 1,823,250 2022 325,000 1,690,000 295,000 2,330,500 2023 290,000 1,653,000 245,000 2,082,500 All units produced in a year are assigned the same average cost. a. Compute for the inventory beginning for 2023 using FIFO cost flow b. Compute for the inventory ending for 2023 using FIFO cost flow c. Compute for the cost of goods sold in 2023 using FIFO cost flow
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, CMA Company was established to manufacture a single product. The company’s production and sales records for 2021-2023 are made available below
|
|
Production |
Sales |
||
|
|
Units |
Cost |
Units |
Cost |
|
2021 |
300,000 |
1,350,000 |
195,000 |
1,823,250 |
|
2022 |
325,000 |
1,690,000 |
295,000 |
2,330,500 |
|
2023 |
290,000 |
1,653,000 |
245,000 |
2,082,500 |
All units produced in a year are assigned the same average cost.
a. Compute for the inventory beginning for 2023 using FIFO cost flow
b. Compute for the inventory ending for 2023 using FIFO cost flow
c. Compute for the cost of goods sold in 2023 using FIFO cost flow
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