Basic Cost Flow Model: Following are data for the Shasta Ski Company

Required: Use T-accounts to show the flow of costs for March for the Shasta Ski Company and then prepare an income statement for the month of March. All transactions are on account.

Transcribed Image Text:

Direct materials inventory Work in process inventory Finished goods Other information: Direct labor costs Manufacturing overhead Material purchases Direct materials put into process Cost of goods sold Marketing costs Administrative costs Sales on account Balance, March 1 ? ? $100,000 Balance, March 31 $ 40,000 280,000 80,000 240,000 112,000 180,000 200,000 360,000 100,000 80,000 600,000