The Following Information Pertains to Ball Company 39 800 Units Are Sold During the Year for $100

question 64

Essay

The following information pertains to Ball Company:
$\begin{array}{ll}\text { Manufacturing costs } & \$ 2400000 \\\text { Units manufactured } & 40000 \\\text { Beginning inventory } & 0 \text { units }\end{array}$
39 800 units are sold during the year for $100 per unit.
Required:
a.What is the average manufacturing cost per unit?
b.What is the cost of ending finished goods inventory?
c.What is the gross margin?
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Definitions:

Operating Activity

Activities that constitute the primary or main activities of an organization, such as sales or services.

Investment In Subsidiary

The purchase of shares or interests in a subsidiary company by a parent company to obtain control or significant influence over the subsidiary's management and operations.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the asset's cost minus accumulated depreciation.

Affiliate's Debt Instrument

A financial security issued by an affiliate entity, representing a loan made by investors to the affiliate.