Answer the following questions using the information below:
Pederson Company reported the following:
$\begin{array}{ll}
\text { Manufacturing costs } & \$ 150,000 \
\text { Units manufactured } & 5,000 \
\text { Units sold } & 4,700 \text { units sold for } \$ 75 \text { per unit } \
\text { Beginning inventory } & 100 \text { units }
\end{array}$
-What is the manufacturing cost for the ending finished goods inventory?
A) $12,000
B) $8,000
C) $11,000
D) $5,000

Question

Answer the following questions using the information below:
Pederson Company reported the following:
 $\begin{array}{ll}
\text { Manufacturing costs } & \$ 150,000 \
\text { Units manufactured } & 5,000 \
\text { Units sold } & 4,700 \text { units sold for } \$ 75 \text { per unit } \
\text { Beginning inventory } & 100 \text { units }
\end{array}$
-What is the manufacturing cost for the ending finished goods inventory?
A) $12,000
B) $8,000
C) $11,000
D) $5,000

Quizplus · Accepted Answer

The manufacturing cost for the ending finished goods inventory is $12,000. This is calculated as follows:Beginning inventory (100 units) x Manufacturing cost per unit ($150,000 / 5,000 units) = $3,000Units manufactured (5,000 units) x Manufacturing cost per unit ($150,000 / 5,000 units) = $150,000Total manufacturing costs = $153,000Cost of goods sold (4,700 units x $75 per unit) = $352,500Ending finished goods inventory (300 units) = $153,000 - $352,500 = $12,000

Answer the Following Questions Using the Information Below: Pederson Company

Answer the Following Questions Using the Information Below:
Pederson Company