The balance in Preston Company’s finished goods inventory account was $650,000 at the beginning of March. Cost of goods manufactured for the month totaled $445,000, and cost of goods sold totaled $470,000.

Required:

a. Prepare separate journal entries to record the following items.

1. Cost of goods manufactured for the month

2. Cost of goods sold for the month

b. Prepare a T-account for finished goods inventory and include the beginning balance for March. Post the appropriate items from the journal entries in part b to this account, and calculate the ending balance in finished goods inventory.