Lee Corporation produced 120,000 boomerangs last year. These boomerangs sell for $100 each. Lee had 11,350 boomerangs in finished goods inventory at the beginning of the year. At the end of the year, there were 7,600 boomerangs in finished goods inventory. Lee uses FIFO method of accounting and the accounting records from last year show the following information:

a.	Purchases of Raw Materials			$900,000
b.	Rent on the factory building			250,000
c.	Utilities (50% factory, 50% sales office)			60,000
d.	Insurance on the factory			10,000
e.	Depreciation, factory equipment			70,000
f.	General Administration			175,000
g.	Raw Materials used as supplies			35,000
h.	Plant receptionist and Plant landscaping			100,000
i.	Salaries
	Direct labor		2,500,000
	Factory Supervisors		500,000
	Plant Manager		90,000
	Plant Controller		40,000
	Receiving personnel		60,000
	Quality Inspectors		150,000
	Salespeople		300,000
	Machine Maintenance salary		100,000
	RM Inventory manager		40,000
	Total Salaries		3,780,000
	Raw Materials Inventory, January 1			310,000
	Raw Materials Inventory, December 31			100,000
	Work In Process Inventory, January 1			450,000
	Work In Process Inventory, Dec. 31			600,000
	Finished Goods Inventory, January 1			454,000

Required:

1. Prepare a Cost of Goods Manufactured Statement.

	Beginning RM Inventory
	+ Raw Material Purchases
	= RM Available for Use
	- RM used as supplies
	- Ending RM Inventory
	= DM Used in Production
	+ Direct Labor
	+ Manufacturing Overhead
	= Total Manufacturing Cost
	+ Beginning WIP
	- Ending WIP
	= COGM

2. What was the cost of producing one boomerang last year?

3. Based on the COGM Statement, what is the value of ending FG inventory?

4. What was COGS?

	= COGM
	+ Beginning FG
	- Ending FG
	= COGS