Selected account balances for the year ended June 30th are provided below for Star Company:

SalesRs.450,000

Selling and administrative salaries . . . . . . . . . . . . Rs.55,000

Purchases of raw materials . . . . . . . . . . . . . . . . . . Rs.145,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .?

Advertising expense . . . . . . . . . . . . . . . . . . . . . . . Rs.40,000

Manufacturing overhead . . . . . . . . . . . . . . . . . . . . Rs.135,000

Inventory balances at the beginning and end of the year were as follows:

Beginning of the Year End of the Year

Raw materials . . . . . . . . . . . . . . .Rs.20,000 Rs.5,000

Work in process . . . . . . . . . . . . . ? Rs.17,500

Finished goods . . . . . . . . . . . . . Rs.25,000 ?

The total manufacturing costs for the year were Rs.341,500; the goods available for sale totaled

Rs.370,000; and the cost of goods sold totaled Rs.330,000.

Required:

1. Complete the schedule of cost of goods manufactured and the cost of goods sold for the year with supporting computations.
2. Prepare Income Statement