Preparing financial statements Cooper Corporation began fiscal year 2011 with the following balances in its inventory accounts.

During the accounting period, Cooper purchased $240,000 of raw materials and issued $248,000 of materials to the production department. Direct labor costs for the period amounted to $324,000, and manufacturing overhead of $48,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $612,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $602,000 were sold for $800,000 during the period. Selling and administrative expenses amounted to $72,000.
Required
a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.
b. Prepare a schedule of cost of goods manufactured and sold and an income statement.

Transcribed Image Text:

Raw Materials Work in Process Finished Goods $56,000 84,000 28,000