2. Given the following data from the Fun Toys and Games Company for Year X7:

1/1/X7 12/31/X7

Direct materials inventory $40,000 $ 20,000

WIP inventory 25,000 15,000

Finished goods inventory 20,000 25,000

Sales 390,000

Gross margin (Sales COGS) 115,000

Direct material purchases 80,000

Prime costs (direct material + direct labor) 210,000

a. Prepare a schedule of cost of goods manufactured (hint, need to work backwards from COGS).

b. What was the cost of goods available for sale in X7?