52. Income Statement and Supporting Schedules. The following information is for Shasta, Inc., for the year ended December 31 , 2019: Raw materials inventory beginning balance $ 15,000 Raw materials inventory ending balance 12,000 Work-in-process inventory beginning balance 825,000 Work-in-process inventory ending balance 900,000 Finished goods inventory beginning balance 615,000 Finished goods inventory ending balance 525,000 Raw material purchases 150,000 Direct labor used in production 187,500 Manufacturing overhead 945,000 Selling costs 135,000 General and administrative 360,000 Sales revenue 1,897,500 Of the total raw materials placed in production for the year, $18,000 was for indirect materials. Required: a. Prepare a schedule of raw materials placed in production for the year ended December 31, 201 9. b. Prepare a schedule of cost of goods manufactured for the year ended December 31 , 2019. c. Prepare a schedule of cost of goods sold for the year ended December 31 , 2019. d. Prepare an income statement for the year ending December 31 , 2019. One Step Further: Skill-Building Cases 53. Ethics: Accounting for Obsolete Inventory. High Tech, Inc., is a public company that produces laser and ink jet printers. Jorge is an accounting staff member who works for the company's controller and is involved in preparing the annual report. One of High Tech's competitors developed a superior color laser jet printer using a less costly production process. Jorge realizes that High Tech's substantial inventory of color laser jet printers is effectively obsolete and will Lu..._ 1.... I..- ..._:u_... 4...... 1...:1... __l. ..__I:__I_l_ .._l.._ l... __.___..l_...__ ...:J.L I I O ("A an 'l'll _____ I l Shasta, Inc. Schedule of Raw Materials Placed in Production Year Ended December 31 Raw materials inventory, beginning balance $ 15,000 Correct Add current period raw materials purchases Incorrect Raw materials available for production I Incorrect Less raw materials inventory, ending balance 12,000 Correct Raw materials placed in production - Incorrect Less indirect materials included in manufacturing overhead Incorrect Direct materials placed in production Incorrect Shasta, Inc. Schedule of Cost of Goods Manufactured Year Ended December 31 WIP inventory, beginning balance 3 825,000 Correct Add current period manufacturing costs: Direct materials Incorrect Direct labor Incorrect Manufacturing overhead applied Incorrect Total current period manufacturing costs Incorrect Total cost of work in process Incorrect Less WIP inventory, ending balance 900,000 Correct Cost of goods manufactured Incorrect Shasta, Inc. Schedule of Cost of Goods Sold Year Ended December 31 Finished goods inventory, beginning balance $ 615 000 Correct Add cost of goods manufactured - Incorrect Cost of goods available for sale Incorrect Less nished goods inventory, ending balance Incorrect Cost of goods sold _ Incorrect Cost of goods manufactured Incorrect C. Shasta, Inc. Schedule of Cost of Goods Sold Year Ended December 31 Finished goods inventory, beginning balance $ 615,000 Correct Add cost of goods manufactured Incorrect Cost of goods available for sale Incorrect Less finished goods inventory, ending balance Incorrect Cost of goods sold Incorrect d. Shasta, Inc. Income Statement Year Ended December 31 Sales $1,897,500 Correct Cost of goods sold Incorrect Gross profit Incorrect Less operating (nonmanufacturing) expenses: Selling Incorrect General and administrative Incorrect Operating profit Incorrect