5Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts.Raw MaterialsWork in Process$ 30,00045,00014,000Finished GoodsReturn to questionDuring the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the productiondepartment. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work inProcess Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completedand transferred to Finished Goods ventory. Goods costing $301,000 were sold for $400,000 during the period. Selling andadministrative expenses amounted to $36,000.Requireda. 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.

Raw material Inventory Beginning balance 30000 Add: Purchase…

with the following balances in its inventory accounts. urchased $125,000 of raw materials and issued $124,000 of materials to the production d amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in no over- or underapplied overhead. Goods costing $306,000 to produce were completed y. Goods costing $301,000 were sold for $400,000 during the period. Selling and 000. f the three inventory accounts that would appear on the year-end balance sheet. anufactured and sold.

with the following balances in its inventory accounts. urchased $125,000 of raw materials and issued $124,000 of materials to the production d amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in no over- or underapplied overhead. Goods costing $306,000 to produce were completed y. Goods costing $301,000 were sold for $400,000 during the period. Selling and 000. f the three inventory accounts that would appear on the year-end balance sheet. anufactured and sold.

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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