Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 30,000 45,000 14,000 During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000. Required 1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. 2. Prepare a schedule of cost of goods manufactured and sold and an income statement.
Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 30,000 45,000 14,000 During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000. Required 1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. 2. Prepare a schedule of cost of goods manufactured and sold and an income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A.
B.
Raw materials
Work in process
Finished goods
ROCKEAGLE CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended Year 2
Raw materials available
Raw materials used
Total manufacturing costs
Total work in process inventory
Cost of goods manufactured
Goods available for sale
Ending Balance
Cost of goods sold
ROCKEAGLE CORPORATION
Income Statement
For the year ended Year 2
Transcribed Image Text:Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials
Work in Process
Finished Goods
$ 30,000
45,000
14,000
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production
department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in
Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed
and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and
administrative expenses amounted to $36,000.
Required
1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
2. Prepare a schedule of cost of goods manufactured and sold and an income statement.
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