Question
Benson Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials $ 54,800 Work in Process 83,300 Finished Goods 27,700
Benson Corporation began fiscal Year 2 with the following balances in its inventory accounts.
Raw Materials | $ 54,800 |
---|---|
Work in Process | 83,300 |
Finished Goods | 27,700 |
During the accounting period, Benson purchased $238,200 of raw materials and issued $248,500 of materials to the production department. Direct labor costs for the period amounted to $322,600, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $611,600 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,900 were sold for $801,900 during the period. Selling and administrative expenses amounted to $70,100.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b1. Prepare a schedule of cost of goods manufactured and sold.
b2. Prepare an income statement.
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