Alpha company anticipated unit sales of widgets are January, 5,000; February, 4,000; and March 8,000. Alpha consistently maintai
1 answer:
Answer:
Total costs of Completed Production
January = $40,000
February = $72,000
Explanation:
Provided sales for the month in units
January 5,000 units
February 4,000 units
March 8,000 units
Provided Inventory maintained = 80% of following month's sale
Cost per unit = $10
For the month of January
Opening Inventory = 5,000 80% = 4,000 units
Cost of goods produced in January = 20% of current month's sales = 1,000 units
And following month February's 80% = 4,000 80% = 3,200
total units produced in January = 1,000 +3,200 = 4,200 @ $10
Total cost = 4,000 $10 = $40,000
For the month of February
Current month sales 20% and following month sales 80%
Current = 4,000 20% = 800 units
Following month = 8,000 80% = 6,400 units
Total production = 800 + 6,400 = 7,200 units
Total cost = 7,200 $10 = $72,000
Total costs of Completed Production
January = $40,000
February = $72,000
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