Skeleton Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished

Skeleton Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.

Answer:
$3,085,000 = $310,000 + (185,000 × $15.00)*

* Cost per unit of goods produced during the year = $15.00 = $3,000,000 ÷ 200,000 units


Curl Company completed 500,000 units during the year at a cost of $24,000,000. The beginning finished goods inventory was 50,000 units at $1,600,000. Determine the cost of goods sold for 525,000 units, assuming a FIFO cost flow.

Answer:

$24,400,000 = $1,600,000 + (475,000 × $48.00)* 

* Cost per unit of goods produced during the year = $48.00 = $24,000,000 ÷ 500,000 units