Problem
StorSmart Company makes plastic organizing bins. The company has the following inventory balances at the beginning and end of March:
|
Beginning Inventory
|
Ending Inventory
|
|
Raw materials
|
|
$
|
33,000
|
|
|
$
|
22,000
|
|
|
Work in process
|
|
|
25,000
|
|
|
|
44,000
|
|
|
Finished goods
|
|
|
60,000
|
|
|
|
58,000
|
|
Additional information for the month of March follows:
Raw materials purchases $ 84,000
Indirect materials used 10,000
Direct labor 55,000
Manufacturing overhead applied 85,000
Selling, general, and administrative expenses 58,000
Sales revenue 450,000
Required:
1. Based on the above information, prepare a cost of goods manufactured report.
2. Based on the above information, prepare an income statement for the month of March.