Problem: Prepare a cost of goods manufactured schedule and partial financial statements.
At May 31, 2005, the accounts of Yellow Knife Manufacturing Company show the following.
1. May 1 inventories finished goods $12,600, work in process $14,700, and raw materials $8,200
2. May 31 inventories?finished goods $11,500, work in process $17,900, and raw materials $7,100.
3. Debit postings to work in process were: direct materials $62,400, direct labor $32,000, and manufacturing overhead applied $48,000.
4. Sales totaled $200,000.
Instructions:
1. Prepare a condensed cost of goods manufactured schedule.
2. Prepare an income statement for May through gross profit.
3. Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2005.