Question

The following information is available for Crete Company at December 31, 2007:

1. Inventory balance Beginning of Year End of Year

Finished Goods $12,000 $11,000

Work in Process 6,300 7,700

Raw Materials 8,500 7,200

2. Debit postings to Work in Process Inventory during the year were:

Direct materials $140,400

Direct labor 76,000

Manufacturing overhead applied 84,000

3. Sales totaled $570,000 for the year.

Instructions

A. Prepare a condensed cost of goods manufactured schedule for 2007.

B. Prepare a partial income statement for 2007 through gross profit.