Reference no: EM132975887
Question - Listed below are account balances from Brown Limited for the year ended December 31, 2020:
Sales $2,125,000
Purchases of raw materials $525,000
Labour $600,000
Utilities $120,000
Indirect materials $ 28,000
Maintenance $140,000
Supervision Factory $75,000
Other administrative expenses $175,000
Selling expenses $240,000
Inventory balances were as follows:
Raw materials inventory, beginning $ 48,000
Raw materials inventory, ending $ 53,000
Work-in-process inventory, beginning $140,000
Work-in-process inventory, ending $ 90,000
Finished goods inventory, beginning $196,000
Finished goods inventory, ending $183,000
Additional Information:
1. The labor is 70% direct, 2% indirect with the remainder being administrative.
2. Utilities and maintenance are 75% related to the factory.
Required -
1. Prepare a schedule of the cost of goods manufactured.
2. Assuming 26,000 units of finished goods were completed in the year, what is the average product cost of each?