Clearview Glass Company purchases sand and various chemicals to be melted in the company's glass furnace. The molten glass flows along a conveyor system that defines sheet thickness and width and cools the molten glass. At the end of the process, workers cut the sheets of glass to a variety of dimensions and package them for delivery to their customers. During the month, Clearview purchased sand and chemicals totaling \(\$ 190,000\) and placed \(\$ 175,000\) of the amount purchased into production. Natural gas consumed in the melting process equaled \(\$ 200,000\). The manufacturing process is machine-intensive, thus depreciation on the furnace and conveyor systems totaled \(\$ 300,000\). Direct labor totaled \(\$ 80,000\). Supplies purchased and consumed in cutting and packaging equaled \(\$ 65,000\). The company's beginning sand and chemical inventory was valued at \(\$ 18,000\), while the beginning work-in-process inventory was valued at \(\$ 75,000\). Ending work-in-process inventory was valued at \(\$ 60,000\). During the month Clearview sold goods costing \(\$ 795,000\) for \(\$ 1,330,000\). The beginning inventory of finished goods was reported on the company's balance sheet at \(\$ 90,000\). General, selling, and administrative costs were recorded at \(\$ 400,000\).

\section*{Required}

A. Prepare a schedule similar to Exhibit 3 to illustrate how costs flow through Clearview's accounting system.

B. Calculate the cost of goods manufactured.

C. Determine the balance in the raw materials and finished goods inventory accounts.

D. Having determined production costs, a manager might use this information to support decision making in a variety of ways. How might a production manager use cost and profitability information? How might a marketing manager use cost and profitability information?