Exhibit 16€“6 includes six ledger accounts. Which of these six accounts often have balances at year-end that appear in the company€™s formal financial statements? Briefly explain how these balances will be classified in the financial statements.
In Exhibit16€“6

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CONQUEST, INC. Summary of Manufacturing Costs For the Year Ended December 31, 2011 Materials Inventory Work in Process Inventory Balance, 1/1/11 25,000 Balance, 1/1/11 Direct materials usad 150,000 Cost of finished goods Direct labor Overhead applied Balance, 12/31/11 30,000 Purchases of Direct materials used $150,000 direct materials 145,000 manufactured $800,000 300,000 360,000 $40.00D Balanoe, 12/31/11 $ 20,000 Direct Labor Finished Goods Inventory Direct labor payroll $292,000 Direct labor cost Balance, 1/1/11 $150,000 applicable to production $300,000Cost of finished goods Cost of goods sold $782,000 manufactured 800,000 Balance, 12/31/11 S 8,000 Balance, 12/31/11 $168,000 Manufacturing Overhead Cost of Goods Sold Indirect labor payroll $140,000 Overhead cost applied Occupancy costs 95,000 Other overhead costs 125,000 LCost of goods 782,000 to production 360,000 sold