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The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.
Sales ..................................................................... $950Raw materials inventory, beginning ...................... $10Raw materials inventory, ending........................... $30Purchases of raw materials ................................. $120Direct labor ......................................................... $180Manufacturing overhead .................................... $230Administrative expenses .................................... $100Selling expenses ................................................. $140Work-in-process inventory, beginning ................ $ 70Work-in-process inventory, ending ..................... $ 40Finished goods inventory, beginning ................. $ 100Finished goods inventory, ending ........................ $ 80
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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