The following information is for Tatum Manufacturing Company.

Required:

a. Prepare a cost of goods manufactured schedule.

b. Appendix: Prepare journal entries to record the following:
1. The purchase of direct material on account 2. The use of direct material in production 3. Direct labor cost 4. Manufacturing overhead cost (Use “various accounts” for the credit side of the entry.)
5. The cost of goods manufactured 6. The sale of finished goods assuming the sale price was $40,000 and it was a cash sale

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Inventory information: Raw materials inventory Work-in-process inventory Finished goods inventory Other information: Direct materials purchases Direct labor cost Manufacturing overhead January 1, 2005 $2,000 December 31, 2005 $4,000 4,000 3,000 8,000 6,000 $ 8,000 12,000 9,000