Reference no: EM132710825

The following cost and inventory data are taken from the accounting records of King Company for the year ending 31/12/2019. They relate to 20,000 units produced. Units sold during the year were 18,000 units.

Direct labor cost € 50,000
Indirect labor 30,000
Indirect materials cost 3,000
Selling and distribution costs 80,000
Administrative salaries 40,800
Purchases of direct materials 150,000
 Other costs and expenses
(60% factory / 40% sales and administration) 30,000
Factory Heat, water and power 25,000

                                                    Beginning of             End of
                                                     the year                the year

D/M inventory                         € 5,000                 €12,000
Work in process inventory          9,000                   4,000
Finished goods inventory                    0                  ?

Required

Problem 1. Prepare the schedule of the cost of goods manufactured

Problem 2. Calculate the cost of producing one unit

Problem 3. King would like a profit of €100 from the sale of each unit. What should be the selling price per unit?

Problem 4. Calculate the cost of the ending finished goods inventory

Problem 5. Prepare the profit and loss for the year ended 31/12/2019