Chapter 16, Problem 1BP

a. 1.

To determine

Ascertain the average cost per unit of hat during the current year.

a. 2.

To determine

Ascertain the balance of the direct materials, work in process, and finished goods inventory account of Company P at the end of the year.

a. 3.

To determine

Ascertain the cost of goods sold during the year.

b.

To determine

Explain whether the manufacturing cost of $1,180,000 is deducted from the revenue or not.