Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts. Raw Materials $ 54,100 Work in Process 82,100 Finished Goods 26,400 During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200. Required: a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. Ending Balance Raw materials Work in process Finished goods b. Prepare a schedule of cost of goods manufactured and sold and an income statement. DALE CORPORATION Cost of Goods Manufactured and Sold Schedule For 2014 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available for sale Cost of goods sold DALE CORPORATIOn Income Statement For 2014
Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts.
| Raw Materials | $ | 54,100 | |
| Work in Process | 82,100 | ||
| Finished Goods | 26,400 | ||
|
During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200. |
| Required: | |
| a. |
Determine the ending balance of each of the three inventory accounts that would appear on the year-end |
|
| b. |
Prepare a schedule of cost of goods manufactured and sold and an income statement. |
| DALE CORPORATION | |
| Cost of Goods Manufactured and Sold Schedule | |
| For 2014 | |
| Raw materials available | |
| Raw materials used | |
| Total |
|
| Total work in process inventory | |
| Cost of goods manufactured | |
| Goods available for sale | |
| Cost of goods sold |
DALE CORPORATIOn
| Income Statement | |
| For 2014 | |
Total Manufacturing Cost :— It is the total cost incurred in the manufacturing of product during the period.
Cost of Goods Manufactured :— It is the cost of goods completed and transferred to finished goods inventory.
Cost of Goods Sold :— It is the total cost of units sold during the period.
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