Problem: The partial information that follows pertains to the operations of Good Time Clock Company for 2004:
Raw materials inventory, January 1, 2004 $ 5,000
Raw materials inventory, December 31, 2004 $ 2,000
Direct labor charged to production during 2004 $18,000
Factory overhead costs incurred during 2004 $15,000
Cost of goods manufactured for the year 2004 $45,000
Work-in-process inventory, January 1, 2004 $ 5,000
Work-in-process inventory, December 31, 2004 $15,000
Finished goods inventory, January 1, 2004 $15,000
Cost of goods sold $40,000
Determine (a) the cost of materials purchased (b) the cost of raw materials used during the year, and (c) the balance in the finished goods inventory account on December 31, 2004.