Selling exp.........................215,000
Purchase of Raw Materials...........260,000
Direct Labor....................... ?????
Admin Exp...........................160,000
Manufac. OH applied to WIP......... 340,000
Tot actual MOH costs............... 350,000
Inventory balances beginning and end of the year were as follows:
Raw materials.......... 50,0000 ~ 40,000
WIP........................ ????? ~ 33,000
Finished Goods......... 30,000 ~ ????
The total manufacturing costs for the year were $675,000; the COG available for sale totaled $720,000; the unadjusted COGS totaled $665,000; and the net operating income was $35,000. The company's over-applied or under-applied OH is closed entirely to COGS.
REQUIRED:
Prepare schedules of COGM and COGS and an income statement (Hint: prepare the income statement and schedule of COGS first followed by the schedule of COGM.)