During the accounting period, Munoz purchased $238,300 of raw materials and issued $249,500 of materials to the production department. Direct labor costs for the period amounted to $323,100, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,100 were sold for $801.200 during the period. Selling and administrative expenses amounted to $71,100. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b. Prepare a schedule of cost of goods manufactured and sold and an income statement.
During the accounting period, Munoz purchased $238,300 of raw materials and issued $249,500 of materials to the production department. Direct labor costs for the period amounted to $323,100, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,100 were sold for $801.200 during the period. Selling and administrative expenses amounted to $71,100. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b. Prepare a schedule of cost of goods manufactured and sold and an income statement.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:During the accounting period, Munoz purchased $238,300 of raw materials and issued $249,500 of materials to the production
department. Direct labor costs for the period amounted to $323,100, and manufacturing overhead of $47,300 was applied to Work in
Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,800 to produce were completed
and transferred to Finished Goods Inventory. Goods costing $600,100 were sold for $801,200 during the period. Selling and
administrative expenses amounted to $71,100.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b. Prepare a schedule of cost of goods manufactured and sold and an income statement.
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