Ending Inventory (Ending balance of account called Inventory)
*0 number of vehicles (units) at the beginning balance of Work-in-Process Inventory.
$0 is the Beginning Inventory and/or dollar value for the 0 number of vehicles at the beginning balance of Work-in-Process Inventory.
*210,000 units of budgeted (planned) production of vehicles
*150,000 units of sold vehicles
*$22 is the Variable (Manufacturing cost per unit produced).
= WIP inventory + Production - Sales
= 0 units + 210,000 units of budgeted production of vehicles – 150,000 units of sold vehicles
= 210,000 units of budgeted production of vehicles – 150,000 units of sold vehicles
= 50,000 vehicles
= 50,000 vehicles × $23 Variable (Manufacturing cost per unit produced)
= $1,500,000
Does the 210,000 units of a product in ( 210,000 units of budgeted (planned) production of a product) the number of units of a product that represent the number of units of a product associated with the beginning inventory balance or the ending inventory balance of the Finished goods inventory? Does the $1,500,000 representing the beginning dollar balance or the ending dollar balance of Finished goods inventory?
Quick Reply
