The accounting records of NuTronics, Inc., include the following information for the year ended December 31, 2011.

Dec. 31 Jan. 1
Inventory of materials $ 24,000 $ 20,000
Inventory of work in process 8,000 12,000
Inventory of finished goods 90,000 80,000
Direct materials used 195,000
Direct labor 124,000
Selling expenses 170,000
General and administrative expenses 140,000

Overhead is assigned to production at $192,000.

a.
Prepare a schedule of the cost of finished goods manufactured.

NuTronics, Inc.
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31, 2011. Make a journal



b.
Assume that the company manufactures a single product and that 20,000 units were completed during the year. What is the average per-unit cost of manufacturing this product?

a.

NuTronics, Inc.
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31, 2011

1. Direct materials used: $195,000

2. Direct labor: $124,000

3. Overhead: $192,000

4. Total manufacturing costs: (1+2+3) $511,000

5. Add: Beginning inventory of work in process: $12,000

6. Less: Ending inventory of work in process: $8,000

7. Cost of finished goods manufactured: (4+5-6) $515,000

b.
Assuming that 20,000 units were completed during the year, the average per-unit cost of manufacturing this product is:
Cost of finished goods manufactured / Number of units completed = $515,000 / 20,000 = $25.75 per unit.

a. To prepare a schedule of the cost of finished goods manufactured, we need to account for the different types of inventory and expenses.

1. Start with the beginning inventory of work in process (WIP) from January 1: $12,000.
2. Add the direct materials used during the year: $195,000.
3. Add the direct labor cost: $124,000.
4. Add the overhead assigned to production: $192,000.
5. This gives us the total manufacturing cost incurred during the year.
Total Manufacturing Cost = WIP Inventory + Direct Materials Used + Direct Labor + Overhead
6. Subtract the ending inventory of work in process as of December 31: $8,000.
Cost of Goods Manufactured = Total Manufacturing Cost - Ending WIP Inventory
This will give us the cost of goods manufactured during the year.

Using the given information:

Cost of Goods Manufactured = ($12,000 + $195,000 + $124,000 + $192,000) - $8,000

b. To calculate the average per-unit cost of manufacturing the product, we need to divide the total manufacturing cost by the number of units completed.

Average Per-Unit Cost = Cost of Goods Manufactured / Number of Units Completed

Using the given information:

Average Per-Unit Cost = Cost of Goods Manufactured / 20,000 units completed

a. To prepare the schedule of the cost of finished goods manufactured, we need to determine the cost of goods manufactured. This can be calculated by adding the direct materials used, direct labor, and manufacturing overhead.

Direct materials used: $195,000
Direct labor: $124,000
Manufacturing overhead: $192,000

Cost of goods manufactured = Direct materials used + Direct labor + Manufacturing overhead
= $195,000 + $124,000 + $192,000
= $511,000

NuTronics, Inc.
Schedule of the Cost of Finished Goods Manufactured
For the Year Ended December 31, 2011

Direct materials used $195,000
Direct labor $124,000
Manufacturing overhead $192,000
_________
Cost of goods manufactured $511,000
_________

b. To calculate the average per-unit cost of manufacturing the product, we need to divide the total cost of goods manufactured by the number of units completed.

Total cost of goods manufactured = $511,000
Number of units completed = 20,000 units

Average per-unit cost = Total cost of goods manufactured / Number of units completed
= $511,000 / 20,000 units
= $25.55 per unit.