Question
Rockeagle Corporation began fiscal year 2018 with the following balances in its inventory accounts: Raw Materials $ 30,000 Work in Process 45,000 Finished Goods 14,000
Rockeagle Corporation began fiscal year 2018 with the following balances in its inventory accounts:
Raw Materials | $ | 30,000 | |
Work in Process | 45,000 | ||
Finished Goods | 14,000 | ||
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000.
Required
Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
Prepare a schedule of cost of goods manufactured and sold and an income statement.
Prepare a schedule of cost of goods manufactured and sold.
Prepare an income statement.
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