Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts.
Raw Materials .......... $60,000
Work in Process ........ 90,000
Finished Goods ........ 28,000
During the accounting period, Dale purchased $250,000 of raw materials and issued $248,000 of materials to the production department. Direct labor costs for the period amounted to $324,000, and manufacturing overhead of $48,000 was applied to Work in Process Inventory. Assume that there was no over-or underapplied overhead. Goods costing $612,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $602,000 were sold for $800,000 during the period. Selling and administrative expenses amounted to $72,000.

a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b. Prepare a schedule of cost of goods manufactured and sold and an income statement.

  • CreatedFebruary 07, 2014
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