Rockeagle Corporation began fiscal Year 2 with the following balances in its inventory accounts. Raw Materials $30,000
Work in Process 45,000
Finished Goods 14,000
During the accounting period, Rockeagle purchased $125,000 of raw materials and issued $124,000 of materials to the production department. Direct labor costs for the period amounted to $162,000, and manufacturing overhead of $24,000 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $306,000 to produce were completed and transferred to Finished Goods Inventory. Goods costing $301,000 were sold for $400,000 during the period. Selling and administrative expenses amounted to $36,000. 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.
ROCKEAGLE CORPORATION
Schedule of cost of goods manufactured and sold
For the year ended 2018
Beginning raw materials inventory
Purchases
Raw materials available 0
Ending raw materials inventory
Raw materials used 0
Labor
Manufacturing overhead
Total manufacturing costs 0
Beginning work in process inventory
Total work in process inventory 0
Ending work in process inventory
Cost of goods manufactured 0
Beginning finished goods inventory
Goods available for sale 0
Ending finished goods inventory
Cost of goods sold $0