The cost of goods sold for the Tricky Corporation for the month of June 2013 was $450,000.
Work-in-process inventory at the end of June was 95 percent of the work-in-process inventory at the beginning of the month.
Overhead is 80 percent of the direct labor cost. During the month, $110,000 of direct materials were purchased.
Revenues for Tricky were $600,000, and the selling and administrative costs were $70,000.
Other information about Tricky's inventories and production for June was as follows:
Ending inventories - June 30
Direct materials $19,000
Work in process ?
Finished goods $105,000
Beginning inventories - June 1
Direct materials $22,200
Work in process $40,000
Finished goods $208,500
a) Prepare a cost of goods manufactured and cost of goods sold statements.
b) Prepare an income statement.
c) What are the prime costs, conversion costs, and period costs?
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Cost of Goods Manufactured
Beginning Materials Inventory 22,200.00
Add: Purchases 110,000.00
Total raw Materials Available for use 132,200.00
Less Ending Materials Inventory (19,000.00)
Total raw Materials USED 113,200.00...
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