Reference no: EM131914004
Question - Valenko Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):
Selling expenses $ 213,000
Purchases of raw materials $ 265,000
Direct labor ?
Administrative expenses $ 157,000
Manufacturing overhead applied to work in process $ 338,000
Total actual manufacturing overhead costs $ 351,000
Inventory balances at the beginning and end of the year were as follows:
Beginning of Year End of Year
Raw materials $ 54,000 $ 30,000
Work in process ? $ 33,000
Finished goods $ 34,000 ?
The total manufacturing costs for the year were $675,000; the cost of goods available for sale totaled $735,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $31,000. The company's overapplied or underapplied overhead is closed entirely to cost of goods sold.
Required:
a. Prepare a schedule of cost of goods manufactured.
b. Prepare a schedule of cost of goods sold.
c. Prepare an income statement for the year.