The accounting records of company iclude the followinginformation relating to the current year:
Dec1 Jan1
Materialsinventory………………………………………………………$20,000 $25,000
Work in processinventory…………………………………………… 37,500 40,000
Finished goods inventory,Jan1(10,000 [email protected] $21 perunit).. ? 210,000
Purchases of direct materials duringyear…………………………. 330,000
Direct labor costs assigned toproduction……………………….. 375,000
Manufacturingoverhead……………………………………………… 637,500
d. Compute the cost of inventory of finished goods at December31 of the current year, assuming that the FIFO method of inventoryis used
