Crafters Inc. produces custom cabinetry. The company's Raw Material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the beginning and end of September follow:

During the month, the company purchased \(\$ 814,000\) of raw material and direct material used during the period amounted to \(\$ 568,000\). Factory payroll costs for September were \(\$ 765,000\), of which 65 percent was related to direct labor. Overhead charges for depreciation, insurance, utilities, and maintenance totaled \(\$ 900,000\) for September.

a. Prepare a schedule of cost of goods manufactured.

b. Prepare a schedule of cost of goods sold.

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Raw Material Inventory.. Work in Process Inventory Finished Goods Inventory. September 1 $102.000 220,000 388,000 September 30 $ 88,000 296,000 425,000