Certain information about the statement of cost of goods manufactured and the income statement for the year

Question:

Certain information about the statement of cost of goods manufactured and the income statement for the year ended December 31, 2016, for John's Production, Inc. is given below:
Beginning inventory of finished goods, 105 percent of
Work in process inventory, January 1, 95 percent of
Net income..............................................................$130,000
Raw materials inventory, January 1...................................$25,000
Direct labor costs......................................................$100,000
Manufacturing overhead, 120 percent of direct labor costs
Work in process inventory, December 31............................$22,000
Finished goods inventory, December 31..............................$35,000
Raw materials inventory, December 31..............................$27,000
Net purchases of raw material........................................$179,000
Net sales.................................................................$650,000
INSTRUCTIONS
Prepare a statement of cost of goods manufactured and an income statement for the year.
Analyze:
Did total inventories for the business increase or decrease during the year? By what amount?
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...