Accounting Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses $215,000

Purchases of raw materials $260,000

Direct Labor ??

Administrative expenses $160,000

Manufacturing overhead applied to work in process $340,000

Total actual manufacturing overhead costs $350,000

Inventory balances at the beginning and end of the year were as follows:

Beginning of year End of Year

Raw material $50,000 $40,000

Work in Progress ?

Finished goods $30,000 ?

The total manufacturing costs for the year were $675,000; the cost of good available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The companys overapplied or underapplied overhead is closed entirely to cost of goods sold.

Required:

Prepare schedules of cost of goods sold manufactured and cost of goods sold and an income.

(optional Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)