Following is information for Graves Corporation. Assume that the Raw Material Inventory account (Beginning balance = $25,000) contains both direct and indirect material. Other beginning balances in inventory accounts: Work-in-process = $0; Finished goods = $30,000. Assume that Graves Corporation uses an Actual Costing system to assign Manufacturing Overhead.

Raw material purchases were $7,000 for the month, paid on account

Put material into production: $15,000 of direct material and $3,000 of indirect material

Accrued payroll of $70,000, of which 75 percent was direct and the remainder was indirect

(1) Incurred and paid other overhead items of $36,000

Assigned manufacturing overhead to WIP

Transferred items costing $96,000 to finished goods

(1) Goods costing $114,000 were sold

Sales were on account for $202,500

Prepare the journal entries for items a f.

What are the ending balances in the inventory accounts (Raw materials inventory,

Work-in-Process inventory, Finished Goods inventory)?

Prepare a Cost of Goods Manufactured Statement

Prepare an income statement, assuming Selling & Administrative expenses of $75,000 and an income tax rate of 25%.