Reference no: EM132454748
Problem - The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.
Sales $1,000
Raw materials inventory, beginning $130
Raw materials inventory, ending $90
Purchases of raw materials $220
Direct labor $240
Manufacturing overhead $210
Administrative expenses $200
Selling expenses $240
Work-in-process inventory, beginning $25
Work-in-process inventory, ending $45
Finished goods inventory, beginning $200
Finished goods inventory, ending $160
Required - Use these data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, elaborate on the relationship between these schedules as they relate to the flow of product costs in a manufacturing company.
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