Question

Nazaro's Boot Company makes specialty boots for the rodeo circuit. On December 31, 2016, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,200 heels at a cost of $8 each in raw materials inventory. During 2017, the company purchased 35,000 additional heels at $8 each and manufactured 16,600 pairs of boots. Determine the unit and dollar amounts of raw materials inventory in heels at December 31. 2017.

Answer 1

Ending inventory 3,000 units

Ending Inventory $24,000

Step-by-step explanation:

I'm going to assume 2 heels are use to get a pair of boots complete

16,600 boots x 2 = 33,200 heels used in production

Then:

`$$Beginning Inventory + Purchase - used = Ending Inventory`

beginning 1,200 at 8

purchase 35,000 at 8

used in production (33,200)

Ending Inventory 3,000 at 8 = 24,000