Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs: Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows: Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs: Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows: Required: 1. Prepare a statement of cost of goods manufactured in good form. 2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Refer to Cornerstone Exercise 1-1. For next year, Sodowsky predicts that 150,000units will be produced, with the following total costs:
Next year, Sodowsky expects to purchase $292,400 of direct materials. Projected beginningand ending inventories for direct materials and work in process are as follows:
Required:
1. Prepare a statement of cost of goods manufactured in good form.
2. What if the ending inventory of direct materials increased by $2,000? Which lineitems on the statement of cost of goods manufactured would be affected and in whatdirection (increase or decrease)?
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