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8 June, 05:27

During fiscal year 2016, Munson Manufacturing made and sold vinyl siding. At the beginning of the year the company had 3, 800 units. During the year Munson made 892, 500 units and sold 887, 600 units. Each unit cost the company $2.18 to manufacture and each unit is sold for $4.22. At the end of the year, what amount will Munson report on its balance sheet for finished goods inventory?

A. $10,682

B. $36,714

C. $20,678

D. $18,966

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  1. 8 June, 05:56
    0
    correct option is D. $18,966

    Explanation:

    given data

    Beginning inventory = 3800 units

    during year Units manufactured = 892500

    unit sold = 887600 units

    Cost of each unit = $2.18

    sold each unit = $4.22

    solution

    we get here first Units available for sale that is

    Units available for sale = Beginning inventory + Units manufactured

    Units available for sale = 3800 + 892500

    Units available for sale = 896300

    Beginning inventory, units 3800

    and now we get Finished goods inventory that is

    Finished goods inventory = Units available for sale - Units sold

    Finished goods inventory = 896300 - 887600

    Finished goods inventory = 8700

    so now Finished goods inventory balance is = Cost of each unit * Finished goods inventory

    Finished goods inventory balance is = $2.18 * 8700

    Finished goods inventory balance is $18966

    so correct option is D. $18,966
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