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Problem
Lakeland Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company's cost accountant has assembled the following information: Units Dollars Sales (budgeted) 200,000 $ 14,000,000 Finished goods inventory, Jan. 1 (actual) 50,000 2,250,000 Finished goods inventory, Mar. 31 (budgeted) 40,000 ? Cost of finished goods manufactured (budgeted manufacturing cost is $48 per unit) ? ? The company uses the first-in, first-out method of pricing its inventory of finished goods.
Instructions
a. Compute the planned production of finished goods (in units).b. Compute the cost of finished goods manufactured.c. Compute the finished goods inventory, March 31. (Remember to use the first-in, first-out method in pricing the inventory.)d. Compute the cost of goods sold.
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