The following data pertain to Martin Company for September:
Raw material inventory, September 1 .................................$ 80,000
Work in process inventory, September 1 .............................. 95,000
Finished goods inventory, September 1 ................................ 65,000
Raw material purchases .................................................. 55,000
Raw material issued ...................................................... 100,000
Direct labor costs incurred .............................................. 60,000
Overhead costs incurred ................................................ 75,000
Cost of goods completed and transferred ............................. 210,000
Cost of sales .............................................................. 235,000
Required:
a. Prepare T-accounts for the three inventory accounts and cost of sales.
b. Record the beginning balances and post the transactions for the month.
c. Draw arrows to show the transfers between accounts.
d. Calculate the inventory balances as of September 30.