Q$2.$

The following selected information was extracted from the $201$ accounting records of Lone Oak

Products:

Raw material purchases

Olrect labor

ndirect labor

$133,000$

$80,000$

Seventy$-$five percent of the company's bulding was

adinintstrative functions.

Inventory data:

Raw material $..............$ December $31$

The January $1$ and December $31$ finished$-$goods inventory conststed of $1,350$ unlts and $1,190$ units, respectively.

Required: Prepare the the following statements:

a$.$ Cost of Goods Manufactured $($Estimated total M$/$O is $$400,000,$ Cost driver Direct Labor Cost; estimated total D$/$L cost $$250,000).$

b$.$ Cost of Goods Sold.