a. $ 15,000 Shasta, Inc. Schedule of Raw Materials Placed in Production Year Ended December 31 Raw materials inventory, beginning balance Add current period raw materials purchases Raw materials available for production Less raw materials inventory, ending balance Raw materials placed in production Less indirect materials included in manufacturing overhead Direct materials placed in production b. S 825.000 Shasta, Inc. Schedule of Cost of Goods Manufactured Year Ended December 31 WIP inventory, beginning balance Add current period manufacturing costs: Direct materials Direct labor Manufacturing overhead applied Total current period manufacturing costs Total cost of work in process Less WIP inventory, ending balance Cost of goods manufactured C. Shasta, Inc. Schedule of Cost of Goods Sold Year Ended December 31 Finished goods inventory, beginning balance Add cost of goods manufactured Cost of goods available for sale Less finished goods inventory, ending balance Cost of goods sold $1,807,500 d. Shasta, Inc. Income Statement Year Ended December 31 Sales Cost of goods sold Gross profit Less operating (nonmanufacturing) expenses: Selling General and administrative Operating profit $ 825,000 WIP inventory, beginning balance Add current period manufacturing costs: Direct materials Direct labor Manufacturing overhead applied Total current period manufacturing costs Total cost of work in process Less WIP inventory, ending balance Cost of goods manufactured UND c Shasta, Inc. Schedule of Cost of Goods Sold Year Ended December 31 Finished goods inventory, beginning balance Add cost of goods manufactured Cost of goods available for sale Less finished goods inventory, ending balance Cost of goods sold $1,807,500 d. Shasta, Inc. Income Statement Year Ended December 31 Sales Cost of goods sold Gross profit Less operating (nonmanufacturing) expenses: Selling General and administrative Operating profit Of the total raw materials placed in production for the year, $18,000 was for indirect materials. $ 15,000 Raw materials inventory beginning balance $ 12,000 Raw materials inventory ending balance Work-in-process inventory beginning balance $ 825,000 Work-in-process inventory ending balance $ 900,000 Finished goods inventory beginning balance S 615,000 Finished goods inventory ending balance $ 525,000 Raw material purchases biroque bois $ 150,000 Direct labor used in production $ 187,500 Eismas Manufacturing overhead $ 945,000 Selling costs $ 135,000 $360,000 $1,897,500 General and administrative Sales revenue