Problem 18-5A Ending inventory computation and evaluation L.O. C4 Shepler Boot C
ID: 2369225 • Letter: P
Question
Problem 18-5A Ending inventory computation and evaluation L.O. C4
Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,800 heels at a cost of $15 each in raw materials inventory. During 2011, the company purchased 44,000 additional heels at $15 each and manufactured 16,450 pairs of boots.
Determine the unit and dollar amounts of raw materials inventory in heels at December 31, 2011
Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,800 heels at a cost of $15 each in raw materials inventory. During 2011, the company purchased 44,000 additional heels at $15 each and manufactured 16,450 pairs of boots.
Explanation / Answer
Shepler Boot Company makes specialty boots for the rodeo circuit. On December 31, 2010, the company had (a) 500 pairs of boots in finished goods inventory and (b) 1,900 heels at a cost of $15 each in raw materials inventory. During 2011, the company purchased 37,000 additional heels at $15 each and manufactured 16,500 pairs of boots.
1. Determine the unit and dollar amounts of raw materials inventory in heels at December 31, 2011.
Ending Inventory Units:
Ending Inventory Value:
begin raw 1900 + purchases raw 37,000 - move to finished 16,500 = 22,400 units at end raw
end value raw = $15 * 22,400 = $336,000
Hope this helps...a little simpler than above.