Rundle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials $ 55,900 Work in Process 83,000 Finished Goods 26,500 During the accounting period, Rundle purchased $239,100 of raw materials and issued $249,800 of materials to the production department. Direct labor costs for the period amounted to $324,000, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,400 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,700 were sold for $800,200 during the period. Selling and administrative expenses amounted to $71,600. 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
Rundle Corporation began fiscal Year 2 with the following balances in its inventory accounts.
| Raw Materials | $ 55,900 |
|---|---|
| Work in Process | 83,000 |
| Finished Goods | 26,500 |
During the accounting period, Rundle purchased $239,100 of raw materials and issued $249,800 of materials to the production department. Direct labor costs for the period amounted to $324,000, and manufacturing overhead of $47,300 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,400 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,700 were sold for $800,200 during the period. Selling and administrative expenses amounted to $71,600.
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.
The income statement tells about the profitability of the business for the current period. If revenues are higher than the total costs, the company leads to earn the profits for the current period.
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