Greenlands, Inc. began the year with three units of finished goods inventory that cost $6 each...

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Accounting

Greenlands, Inc. began the year with three units of finishedgoods inventory that cost $6 each to manufacture. Greenlands alsoestablished a $6 per unit standard product cost for the upcomingaccounting period. The company actually incurred unit costs of $4for direct materials, $2 for direct labor, and $1 for factoryoverhead for the ten units it produced in the current period.Greenlands sold 11 units at $10 each during the accounting period.The firm accounted for inventory on a first-in, first-out (FIFO)basis.
*Required**: Compute Greenlands’ costof goods manufactured, cost of goods sold, and grossprofit.*
Cost of Goods Manufactured
Direct materials
+ direct labor
+ factory overhead
Cost of goods manufactured
Cost of Goods Sold
Beginning inventory of finished goods
+ Cost of goods manufactured
Finished goods available for sale
- Ending inventory of finished goods
Cost of goods sold

Income Statement
Sales revenue
Cost of goods sold
Gross profit
Balance Sheet
Finished goods inventory

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4.1 Ratings (488 Votes)

Greenlands Inc actually incurred 4 for direct materials 2 for direct labor and 1 for factory overhead for the ten units it produced in the current period 1Hence Cost of Goods See Answer

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Direct materials
+ direct labor
+ factory overhead
Cost of goods manufactured

Beginning inventory of finished goods
+ Cost of goods manufactured
Finished goods available for sale
- Ending inventory of finished goods
Cost of goods sold