DATA INPUT
Inventory Classification January 1, 20x1 December 31, 20×1
Raw material 55,000$ 75,000$
Work in process 110,000 125,000
Finished goods 160,000 155,000
Raw materials purchased 240,000
Direct labor expenses 420,000
Manufacturer overhead costs
Indirect material 12,000$
Indirect labor 22,000
Depreciation 110,000
Utilities 23,000
Other 35,000
Sales revenue 1,210,000
Selling & Administrative 105,000
Tax rate 35%
SOLUTION
1. Schedule of Cost of Goods Manufactured
Direct Material:
Raw-material inventory 55,000$
Manufacturing overhead:
Indirect material 12,000$
Indirect labor 22,000
2. Schedule of Cost of Goods Sold
Finished-goods inventory, January 1 160,000$
832,000$
3. Income Statement
Sales revenue 1,210,000$
Less: Cost of goods sold 832,000