Darke Corporation makes one product and has provided the following information:
A.Budgeted unit sales for October,November,and December are 7,600,9,000,and 10,100 units respectively.
B.The ending finished goods inventory equals 40% of the following month's sales.
C.Each unit of finished goods requires 5 pounds of raw materials.The raw materials cost $1.00 per pound.
D.The direct labor wage rate is $19.00 per hour.Each unit of finished goods requires 3.0 direct labor-hours.
E.Manufacturing overhead is entirely variable and is $11.00 per direct labor-hour.
The estimated finished goods inventory balance at the end of November is closest to:

Question

Quizplus · Accepted Answer

The estimated unit product cost is computed as follows:
 11ea7761_17ae_dc7b_81a5_7b289f1b91d2_TB2580_00 The estimated finished goods inventory balance at the end of November is computed as follows:
 11ea7761_17af_038c_81a5_554a89e513f5_TB2580_00 *December sales of 10,100 units × 40% = 4,040 units

Darke Corporation Makes One Product and Has Provided the Following