Chris Dodd Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
| Selling expenses |
$ |
211,000 |
| Purchases of raw materials |
$ |
263,000 |
| Direct labor |
|
? |
| Administrative expenses |
$ |
152,000 |
| Manufacturing overhead applied to work in process |
$ |
335,000 |
| Total actual manufacturing overhead costs |
$ |
358,000 |
|
| Inventory balances at the beginning and end of the year were as follows: |
| |
Beginning of Year |
End of Year |
| Raw materials |
$ |
55,000 |
|
$ |
39,000 |
|
| Work in process |
|
? |
|
$ |
29,000 |
|
| Finished goods |
$ |
36,000 |
|
|
? |
|
|
|
The total manufacturing costs for the year were $670,000; the cost of goods available for sale totaled $740,000; the unadjusted cost of goods sold totaled $662,000; and the net operating income was $39,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold.
|
| a. |
Prepare a schedule of cost of goods manufactured.
|
| b. |
Prepare a schedule of cost of goods sold
| c. |
Prepare an income statement for the year.
|
|