The accounting records of Idaho Paper Company include the following information relating to the current year:
The company manufactures a single product; during the current year, 45,000 units were manufactured and 40,000 units were sold.
a. Prepare a schedule of the cost of finished goods manufactured for the current year. (Show a supporting computation of the cost of direct materials used during the year.)
b. Compute the average per-unit cost of production during the current year.
c. Compute the cost of goods sold during the year, assuming that the FIFO (first-in, first-out) method of inventory costing is used.
d. Compute the cost of the inventory of finished goods at December 31 of the current year, assuming that the FIFO (first-in, first-out) method of inventory costing is used.