Here are selected data for Sunny Sky Corporation: Beginning raw materials inventory $37,000 Beginning work in process inventory $62,200 Beginning finished goods inventory $58,300 Cost of materials purchased $151,000 Cost of direct materials requisitioned $91,300 Direct labor incurred $135,000 Actual manufacturing overhead $160,000 Cost of goods manufactured $287,000 Cost of goods sold $265,000 Manufacturing overhead rate (per dollar of direct labor cost) $1.25 What is the finished goods ending inventory

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Business

Kaden Blankenship

23 June, 04:59

Here are selected data for Sunny Sky Corporation: Beginning raw materials inventory $37,000 Beginning work in process inventory $62,200 Beginning finished goods inventory $58,300 Cost of materials purchased $151,000 Cost of direct materials requisitioned $91,300 Direct labor incurred $135,000 Actual manufacturing overhead $160,000 Cost of goods manufactured $287,000 Cost of goods sold $265,000 Manufacturing overhead rate (per dollar of direct labor cost) $1.25 What is the finished goods ending inventory

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Aryanna Reeves · Answer 1

Value of closing inventory = $60,300

Explanation:

The closing inventory represents the value of goods available for sale but yet to be sold as at the end of a particular period of time. It is calculated as follows:

Closing inventory = opening inventory + goods manufactured - cost of goods sold

58,300 + 287,000 - 285,000 = 60,300

Value of closing inventory = $60,300