Menaga Company reports the following information pertaining to its operating activities:

During the year, the company purchased $175,000 of direct materials and incurred $45,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $65,000. Selling and administrative expenses amounted to $160,000, and the company’s annual sales amounted to $500,000.

a. Prepare Menaga’s schedule of the cost of finished goods manufactured.

b. Prepare Menaga’s income statement (ignore income taxes).

Transcribed Image Text:

Materials Inventory.. Work in Process Inventory.. Finished Goods Inventory. Ending Beginning Balance Balance $80,000 50,000 25,000 $75,000 85,000 35,000