Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for theyear 2020.(Click the icon to view the information.)Calculate (1) the budgeted unit costs of ending finished-goods inventory on December 31, 2020 (label it Schedule 6A) and (2) theending inventories budget on December 31, 2020 (label it Schedule 6B).(1). Calculate the budgeted unit costs of ending finished-goods inventory on December 31, 2020 (label it Schedule 6A). (Round alldollar amounts to the nearest cent. Enter all input per unit of output amounts for direct manufacturing labor to two decimal places, andmachine setup overhead to three decimal places.)Schedule 6A: Unit Costs of Ending Finished Goods-InventoryDecember 31, 2020MetalFabricDirect manufacturing laborMachine setup overheadTotalCosp perunit of inputKnoxInput per unit ofoutputlbs.yardhourshoursTotalProductAyerInput per unit ofoutputlbs.yardshourshoursTotal Target ending inventory in unitsDirect materialsMetalFabricDirect manufacturinglaborMetalFabricDirect manufacturing laborMachine setup overhead$$Target ending inventoryProductKnox2,10013 per hourMachine setup overhead $ 110 per hour2per pound (same as in 2019)3 per yard (same as in 2019)KnoxAyer1,100Content of Each Product Unit1 pounds1.00 yard0.05 hours0.08 hoursAyer2 pounds2.00 yards0.10 hours0.025 hoursDirect MaterialsMetalFabric8,000 pounds 4,000 yards

Name: Bright Light Corporation manufactures and sells two types of decorati
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Description: Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for theyear 2020.(Click the icon to view the information.)Calculate (1) the budgeted unit costs of ending finished-goods i

For accounting purposes, a budget is prepared on an estimation basis taking past results as base…

Business

Accounting

Target ending inventory in units Direct materials Metal Fabric Direct manufacturing labor $ Machine setup overhead $ Metal Fabric Direct manufacturing labor Machine setup overhead $ $ Target ending inventory Product Knox 2,100 2 per pound (same as in 2019) 3 per yard (same as in 2019) 13 per hour 110 per hour Knox Content of Each Product Unit Ayer Ayer 1,100 1 pounds 1.00 yard 0.05 hours 0.08 hours Metal 8,000 pounds 2 pounds 2.00 yards 0.10 hours 0.025 hours Direct Materials Fabric 4,000 yards

Target ending inventory in units Direct materials Metal Fabric Direct manufacturing labor $ Machine setup overhead $ Metal Fabric Direct manufacturing labor Machine setup overhead $ $ Target ending inventory Product Knox 2,100 2 per pound (same as in 2019) 3 per yard (same as in 2019) 13 per hour 110 per hour Knox Content of Each Product Unit Ayer Ayer 1,100 1 pounds 1.00 yard 0.05 hours 0.08 hours Metal 8,000 pounds 2 pounds 2.00 yards 0.10 hours 0.025 hours Direct Materials Fabric 4,000 yards

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

Question

Bright Light Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the
year 2020.
(Click the icon to view the information.)
Calculate (1) the budgeted unit costs of ending finished-goods inventory on December 31, 2020 (label it Schedule 6A) and (2) the
ending inventories budget on December 31, 2020 (label it Schedule 6B).
(1). Calculate the budgeted unit costs of ending finished-goods inventory on December 31, 2020 (label it Schedule 6A). (Round all
dollar amounts to the nearest cent. Enter all input per unit of output amounts for direct manufacturing labor to two decimal places, and
machine setup overhead to three decimal places.)
Schedule 6A: Unit Costs of Ending Finished Goods-Inventory
December 31, 2020
Metal
Fabric
Direct manufacturing labor
Machine setup overhead
Total
Cosp per
unit of input
Knox
Input per unit of
output
lbs.
yard
hours
hours
Total
Product
Ayer
Input per unit of
output
lbs.
yards
hours
hours
Total

Target ending inventory in units
Direct materials
Metal
Fabric
Direct manufacturing
labor
Metal
Fabric
Direct manufacturing labor
Machine setup overhead
$
$
Target ending inventory
Product
Knox
2,100
13 per hour
Machine setup overhead $ 110 per hour
2
per pound (same as in 2019)
3 per yard (same as in 2019)
Knox
Ayer
1,100
Content of Each Product Unit
1 pounds
1.00 yard
0.05 hours
0.08 hours
Ayer
2 pounds
2.00 yards
0.10 hours
0.025 hours
Direct Materials
Metal
Fabric
8,000 pounds 4,000 yards

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