Assume management predicts that the selling price per unit and

Question
Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2020 as in 2019. Fixed manufacturing costs and marketing, distribution, and customer-service costs in 2020 are also predicted to be the same as in 201 9. Sales in 2020 are forecast to be 122,000 units. The desired of finished goods, December 31, 2020, is 12,000 units. Assume zero ending inventories of both direct materials and work in process. The company’s of finished goods is carried at the average unit manufacturing costs for 2020. The company uses the first-in, first-out inventory method. Management has asked that you prepare a budgeted statement of comprehensive income for 2020. On December 31, 201 9, finished goods inventory is 9,000 units. 1. Calculate the units of finished goods produced in 2020. 2. Prepare a budgeted statement of comprehensive income for 2020.

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