1.The following inventory data relate to the Reta Company:

INVENTORIES

	Beginning	Ending
Finished goods	$80,000	$100,000
Work in process	65,000	70,000
Direct materials	60,000	64,000

Revenues and costs for the period:

Sales	$740,000
Cost of goods available for sale	650,000
Total manufacturing costs	575,000
Factory overhead	154,000
Direct materials used	164,000
Selling and administrative expenses	51,000

a. Direct materials purchased b. Direct labor costs incurred c. Cost of goods sold e. How does cost of goods sold statement differ from income statement?

2.The following data was taken from the general ledger and other records of Martinez Manufacturing Co. at July 31, the end of the first month of operations in the current fiscal year: Sales $50,000 Materials inventory (July 1) 15,000 Work in process inventory (July 1) 20,000 Finished goods inventory (July 1) 28,000 Materials purchased 21,000 Al Tareeqah Management Studies - 2020 8 Direct labor cost 12,500 Factory overhead (including $5,000 of indirect materials used and $2,500 of indirect labor cost) 11,500 Selling and administrative expense 8,000 Inventories at July 31: Materials 16,000 Work in process 18,000 Finished goods 30,000 a. Prepare a statement of cost of goods manufactured. b.Determine the cost of goods sold for the month. c. What are the applications of cost of goods sold and cost of goods manufactured statements?