Latterton Company uses a standard process cost system for all its products. All inventories are carried at standard. Inventories and cost of goods sold are adjusted for financial statement purposes for all variances considered material in amount at the end of the fiscal year. All products are considered to flow through the manufacturing process to finished goods and ultimate sale in a first in, first out pattern. The standard cost of one product is as follows:
Materials$2
Direct labor (.5 DLH at $8)4
Factory overhead3
Total standard cost$9
There is no work in process inventory of this product due to the nature of the product and the manufacturing process.
The following schedule reports the sales and manufacturing activity measured at standard cost for the current fiscal year:

The balance of the Finished Goods Inventory, $140,800, reported on the balance sheet at the beginning of the year included a $5,800 adjustment for variances from standard cost. The unfavorable standard cost variances for labor for the current fiscal year consisted of a wage rate variance of $32,000 and a labor efficiency variance of $20,000 (2,500 hours at $8). There were no other variances from standard cost for this year.
Required:
Assume the unfavorable labor variances totaling $52,000 are considered material in amount and are to be allocated to finished goods inventory and cost of goods sold. Compute the amounts to be shown for Finished Goods Inventory and Cost of Goods Sold in the financial statements prepared for the fiscal year.

Dollars 95,000 $855,000 135,000 110,000 990,000 19,000 171,000 91,000 $819,000 Units Product manufactured.... Beginning finished goods inventory. Goods available for sale.... Ending finished goods inventory Cost of goods sold.. 15,0001