A hysterical I. M. Dunce corners you in the hallway 30 minutes before accounting class. “Help me, help income Statement me!” I. M. pleads. “I woke up this morning and discovered that my pet German Shepherds Fifo and Lifo

(LO 2,3,5) ate my homework, and these shredded pieces are all that I have left!” Being a kind and generous soul, you willingly declare, “There’s no need to fear! I’m a real whiz at accounting and will be glad to help you.” A relieved I. M. Dunce hands you the following torn homework remnants.

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DHSOVelEo N ey MMOL WTASHUISTSV |e ssc esis gaauscsundoacccgeacccooc eeapedeonrccectoeon : 125 Directelabonrate pe phoulpen ear ie tech eneeanse peseerereeer $ 15 Rawinnatental PUChaSecit. peeat ey tre: merce eee. coat eene eee 5,250 Raw material beginning iNVENtOry ..........00cccceseceeceeeeeeeereeeeenes 1,400 Page 2 Manufacturing overhead (actual equals applied) ................ GS. 7C Beginning work-in-ProCeSs INVENKOSY .........ccccseeeeeeeeereteeeeeees 1,500 Costoiiqoodsimanvractuneict lerenemeenet ntentee ce m 8,000 ENnGingmmshecd-Goods ii VemtOny eccsserueseeee ene seeeeeteeae ate 3,000 Page 3 Job remaining in ending work-in-process inventory:

DOC TIEDO l rea rcscesces caneteen nts See eee eRe ea RE Ree ee $ 500 Direciimatenialliecoma.c-h mcnreae eieec mnevt eeeteu csee e 1,300 Overhead ($2 per direct-labor HOUL).......ccccccsseseeseeesreeeeee 200 Ending work-in-PproCess iINVENtOLy .........ccccceseeeesseeeenseeeeseeeeees $ 2,000 TOA ME VEM Were ieee cde sce. cea caesar cee $13,500 KCi gorctow agi Ola ae tinct cary dee ternctereeer nace Pedce eeateaareectoacsethocos0ssctocoon ke 4,000 Marketing and administrative COStS.......c..ccccccsseeessseesseerseeeen OPESraLiNG, OORT sce gesesen.tse esee eetcz oee eceei eeye euceaete 1,000 Required

a. Prepare T-accounts to show the flow of costs and determine each of the following:
. Selling and administrative costs.
- Cost of goods sold.
_ Beginning finished-goods inventory.
Direct material used.
wnnr Ending raw-material inventory.

b. Prepare an income statement.