Assume management predicts that the selling price per unit and variable cost per unit will be the…

Assume management predicts that the selling price per unit and variable cost per unit will be the same in 2017 as in 2016. Fixed manufacturing costs and marketing, distribution, and customer-service costs in 2017 are also predicted to be the same as in 2016. Sales in 2017 are forecast to be 122,000 units. The desired ending inventory of finished goods, December 31, 2017, is 12,000 units. Assume zero ending inventories of both direct materials and work in process. The company’s ending inventory of finished goods is carried at the average unit manufacturing costs for 2017. The company uses the first-in, first-out inventory method. Management has asked that you prepare a budgeted statement of comprehensive income for 2017. On December 31, 2016, finished goods inventory is 9,000 units.


 1. Calculate the units of finished goods produced in 2017.

 2. Prepare a budgeted statement of comprehensive income for 2017.

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