Whizbang Company creates, produces, and markets video games. Most of the games in¬

volve some sort of brain teaser. Leonard Poison, the owner of Whizbang, is convinced that his employees must have strong analytical and problem-solving skills. Before any employee is hired, he or she must successfully solve a puzzle of some sort. The puzzle always relates to the employee's area of expertise. You are applying for a job as. an entry-level accountant.

The controller of the firm wishes to test your knowledge of basic cost terms and concepts and, at the same time, evaluate your analytical skills. The controller has gathered informa¬

tion (presented below) for one of Whizbang's plants for the previous year.

a. Conversion cost was $360,000 and was three times prime cost.

b. Direct materials used in production equaled $100,000.

c. Cost of goods manufactured was $415,000

d. Beginning work in process is one-half the cost of ending work in process.

e. There are no beginning or ending inventories for raw materials.

f. Cost of goods sold was 90 percent of cost of goods manufactured.

g. Beginning finished goods inventory was $10,000.

Required:

1. Prepare a statement of cost of goods manufactured for the previous year.

2. Prepare a statement of cost of goods sold for the previous year.