Problem
The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.
Sales ........................................................................ $1,000
Raw materials inventory, beginning ........................$130
Raw materials inventory, ending ................................$90
Purchases of raw materials ........................................$220
Direct labor ..................................................................$240
Manufacturing overhead ..........................................$210
Administrative expenses ...........................................$200
Selling expenses ............................................... .........$240
Work-in-process inventory, beginning ....................$25
Work-in-process inventory, ending ..........................$45
Finished goods inventory, beginning .....................$200
Finished goods inventory, ending ...........................$160
Use these data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, elaborate on the relationship between these schedules as they relate to the flow of product costs in a manufacturing company.