Madam Oak’s Furniture manufactures wooden rocking chairs. Madam Oak’s Furniture purchased the following materials in June:
1,500 springs (part of the rocking mechanism) at a cost of $15,000; each chair uses 2 springs
Glue at a cost of $1,500 (enough to manufacture 500 chairs)
Stain at a cost of $500 (enough to manufacture 500 chairs)
Wood at a cost of $5,000 (enough to build 1,000 chair frames)
Madam Oak’s Furniture produced 500 chairs during June and had no beginning balances in raw materials, work in process, or finished goods inventories.

Required
A. Which of Madam Oak’s material costs would likely be classified as direct materials? Which as indirect materials?
B. If Madam Oak’s Furniture completed only 400 of the 500 chairs on which production was started, what is the finished goods inventory account balance at the end of June?
C. If 380 of the finished chairs were sold, what would be the cost of goods sold?
D. What is the work in process inventory account balance at the end of June?