Period 2 Pan Demic, Inc. (PDI) manufactures and sells cast iron skillets. A finished skillet sells for $40 costs $15 to manufacture. PDI uses one raw material, iron ore, which is buys for $8/pound. Skillet Forgers heat the iron ore and form it into skillets. Forgers are paid $55/hour. PDI Schedule of Raw Materials Period 2. During the period, PDI purchased 800 pounds of Iron Ore. At the end of the period, they transferred 1,000 pounds of Iron Ore to WIP. They used 150 hours of direct labor and incurred $12,400 of Factory Overhead. PDI ended the period with $4,850 in WIP and 210 skillets in Finished Goods. Account Period 2 Statement of Cost of Goods Manufactured Period 2 Dollar Direct materials used Account Amount PDI Schedule of Cost of Goods Sold Dollar Amount Period 2 PDI Balance Sheet Account Amount $2,400 Finished Goods Beginning Inventory $3,150 Raw Materials Inventory Raw Materials Beginning Inventory Purchases Raw materials available for use Raw Materials Ending Inventory Direct Materials Used (transferred to WIP) Direct labor $8,250 Factory overhead $12,400 Manufacturing costs for the period WIP beginning inventory $3,150 WIP ending inventory Total Cost of goods manufactured (Transferred to Finished Goods) Cost of Goods Manufactured Cost of Goods Available for Sale Finished Goods Ending Inventory Cost of Goods Sold WIP Inventory Finished Goods Inventory Total Inventory Period 2 PDI Income Statement Account Amount Sales Cost of Goods Sold $3,150 Gross Profit