Asked by Francine Fiscor on May 27, 2024
Verified
The estimated finished goods inventory balance at the end of May is closest to:
A) $102,676
B) $111,986
C) $26,999
D) $129,675
Finished Goods
Products that have completed the manufacturing process and are ready to be sold to customers.
Inventory
The total amount of goods and materials held by a company awaiting sale or use in production.
- Review estimated balances of the completed goods inventory.
Verified Answer
SY
SYN YI CHONGMay 28, 2024
Final Answer :
D
Explanation :
The estimated unit product cost is computed as follows: 
The estimated finished goods inventory balance at the end of May is computed as follows: 
*June sales of 13,300 units × 10% = 1,330 units
Reference: CH08-Ref10
Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Credit sales are collected:
30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 10% of the following month's sales.The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
The estimated finished goods inventory balance at the end of May is computed as follows: *June sales of 13,300 units × 10% = 1,330 unitsReference: CH08-Ref10
Fuson Corporation makes one product and has provided the following information to help prepare the master budget for the next four months of operations:
Credit sales are collected:30% in the month of the sale
70% in the following month
Raw materials purchases are paid:
30% in the month of purchase
70% in the following month
The ending finished goods inventory should equal 10% of the following month's sales.The ending raw materials inventory should equal 10% of the following month's raw materials production needs.
Learning Objectives
- Review estimated balances of the completed goods inventory.