Question

QUESTION 21 THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 20 THROUGH 22. Pederson Company reported the following: Manufacturing costs $2,000,000 Units manufactured 50,000 Units sold 47,000 units sold for $75 per una Beginning inventory O units ? What is the average manufacturing cost per unit? 1. $40.00 2. $42.55 3. $00.025 4.$75.00 QUESTION 22 What is the amount of ending finished goods inventory? 1.$1,880,000 2. $120,000 3. $225,000 4. $105,000 QUESTION 23 What is the amount of gross profit? 1. $1,750,000 2. $3,525,000 3.$5,405,000 4. $1,645,000 QUESTION 24 Manufacturing sector companies report 1. only merchandise inventory 2. only finished goods inventory 3. direct materials inventory, work-in-process inventory, and finished goods inventory accounts 4. no inventory accounts

Answer 1

21) Answer 1 $ 40.00 Average manufacturing cost per unit = Total manufacturing cost / Units produced $ 2000000 / 50000 $ 40.00 22) Answer | 2 $ 120,000 Amount of ending finished goods inventory = Ending finished inventory units * unit cost 3000 * $ 40 $ 120,000 Ending finished inventory units = 50000 - 47000 = 3000

23) Answer 4 $1,645,000 Gross Profit Sales 47000* $ 75 Less: Cost of Goods Sold 47000 * $ 40 ) Gross Profit $ $ $ 3,525,000 (1,880,000) 1,645,000 24) Answer 3 direct materials inventory, work in process inventory and finished goods inventory accounts. Companies in the manufcturing sector deals with direct raw materials, work in process and finished goods.