Question

Munoz Corporation began fiscal Year 2 with the following balances in its inventory accounts.

Raw Materials	$	54,000
Work in Process		82,500
Finished Goods		27,300

During the accounting period, Munoz purchased $239,200 of raw materials and issued $249,100 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,100 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,500 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,100 were sold for $801,700 during the period. Selling and administrative expenses amounted to $70,600.

Required

1. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.

2. Prepare a schedule of cost of goods manufactured and sold and an income statement.

1:

	Ending Balance Raw materials Work in process Finished goods

2:

	MUNOZ CORPORATION Schedule of cost of goods manufactured and sold For the year ended Year 2    Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available for sale Cost of goods sold

2:

	MUNOZ CORPORATION. Income Statement For the year ended Year 2

Answer 1