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Thornton Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 54,400 82,700 27,400 During the accounting period, Thornton purchased $239,500 of raw materials and issued $248,100 of materials to the production department. Direct labor costs for the period amounted to $322,500, and manufacturing overhead of $47,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,400 were sold for $801,300 during the period. Selling and administrative expenses amounted to $71,800. 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.

Thornton Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials Work in Process Finished Goods $ 54,400 82,700 27,400 During the accounting period, Thornton purchased $239,500 of raw materials and issued $248,100 of materials to the production department. Direct labor costs for the period amounted to $322,500, and manufacturing overhead of $47,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,400 were sold for $801,300 during the period. Selling and administrative expenses amounted to $71,800. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 11-11A (Algo) Preparing financial statements LO 11-3 Thornton Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials. Work in Process Finished Goods $ 54,400 82,700 27,400 During the accounting period, Thornton purchased $239,500 of raw materials and issued $248,100 of materials to the production department. Direct labor costs for the period amounted to $322,500, and manufacturing overhead of $47,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,400 were sold for $801,300 during the period. Selling and administrative expenses amounted to $71,800. 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. Req A Req B1 Raw materials Work in process Finished goods Req B2 Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. Ending Balance < Req A Req B1 >
Transcribed Image Text:Exercise 11-11A (Algo) Preparing financial statements LO 11-3 Thornton Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials. Work in Process Finished Goods $ 54,400 82,700 27,400 During the accounting period, Thornton purchased $239,500 of raw materials and issued $248,100 of materials to the production department. Direct labor costs for the period amounted to $322,500, and manufacturing overhead of $47,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,800 to produce were completed and transferred to Finished Goods Inventory. Goods costing $600,400 were sold for $801,300 during the period. Selling and administrative expenses amounted to $71,800. 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. Req A Req B1 Raw materials Work in process Finished goods Req B2 Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet. Ending Balance < Req A Req B1 >
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