es Rooney Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 55,900 82,600 27,300 During the accounting period, Rooney purchased $239,900 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,600, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,400 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,600 were sold for $801,000 during the period. Selling and administrative expenses amounted to $70,900. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b1. Prepare a schedule of cost of goods manufactured and sold. b2. Prepare an income statement. Complete this question by entering your answers in the tabs below.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Rooney Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials
Work in Process
Finished Goods
$ 55,900
82,600
27,300
During the accounting period, Rooney purchased $239,900 of raw materials and issued $249,000 of materials to the production
department. Direct labor costs for the period amounted to $323,600, and manufacturing overhead of $46,900 was applied to
Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,400 to produce were
completed and transferred to Finished Goods Inventory. Goods costing $601,600 were sold for $801,000 during the period.
Selling and administrative expenses amounted to $70,900.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b1. Prepare a schedule of cost of goods manufactured and sold.
b2. Prepare an income statement.
Complete this question by entering your answers in the tabs below.
Transcribed Image Text:es Rooney Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 55,900 82,600 27,300 During the accounting period, Rooney purchased $239,900 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,600, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,400 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,600 were sold for $801,000 during the period. Selling and administrative expenses amounted to $70,900. Required a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. b1. Prepare a schedule of cost of goods manufactured and sold. b2. Prepare an income statement. Complete this question by entering your answers in the tabs below.
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