Question:
XYZ Company recorded the following information related to their inventory accounts for January: January 1, 2003 January 31, 2003 Direct materials 15,000 ? Work in process 15,000 10,000 Finished goods ? 7,000 Additional information is as follows:
Cost of goods manufactured .......... $26,000 Direct labor ........................ 8,000 Applied overhead .................... 10,000 Net income .......................... 40,000 S&A expenses ........................ 20,000 Sales revenue ....................... 90,000 Calculate the finished goods inventory balance on January 1.