Accounting Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses $215,000
Purchases of raw materials $260,000
Direct Labor ??
Administrative expenses $160,000
Manufacturing overhead applied to work in process $340,000
Total actual manufacturing overhead costs $350,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of year End of Year
Raw material $50,000 $40,000
Work in Progress ?
Finished goods $30,000 ?
The total manufacturing costs for the year were $675,000; the cost of good available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold.
Required:
Prepare schedules of cost of goods sold manufactured and cost of goods sold and an income.
(optional Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)