Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts.   Raw Materials $ 54,100   Work in Process   82,100   Finished Goods   26,400       During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200.   Required: a. Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.       Ending Balance Raw materials   Work in process   Finished goods     b. Prepare a schedule of cost of goods manufactured and sold and an income statement. DALE CORPORATION Cost of Goods Manufactured and Sold Schedule For 2014         Raw materials available       Raw materials used           Total manufacturing costs       Total work in process inventory       Cost of goods manufactured       Goods available for sale       Cost of goods sold   DALE CORPORATIOn   Income Statement For 2014

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Dale Corporation began fiscal year 2014 with the following balances in its inventory accounts.

 
Raw Materials $ 54,100  
Work in Process   82,100  
Finished Goods   26,400  
 

 

During the accounting period, Dale purchased $238,400 of raw materials and issued $249,000 of materials to the production department. Direct labor costs for the period amounted to $323,800, and manufacturing overhead of $46,900 was applied to Work in Process Inventory. Assume that there was no over- or underapplied overhead. Goods costing $610,300 to produce were completed and transferred to Finished Goods Inventory. Goods costing $601,700 were sold for $801,300 during the period. Selling and administrative expenses amounted to $70,200.

 

Required:
a.

Determine the ending balance of each of the three inventory accounts that would appear on the year-end balance sheet.

 
 
  Ending Balance
Raw materials  
Work in process  
Finished goods  

 

b.

Prepare a schedule of cost of goods manufactured and sold and an income statement.

DALE CORPORATION
Cost of Goods Manufactured and Sold Schedule
For 2014
   
   
Raw materials available  
   
Raw materials used  
   
   
Total manufacturing costs  
   
Total work in process inventory  
   
Cost of goods manufactured  
   
Goods available for sale  
   
Cost of goods sold  

DALE CORPORATIOn

 
Income Statement
For 2014
   
   
   
   
   
   
Expert Solution
Step 1 Introduction

Total Manufacturing Cost :— It is the total cost incurred in the manufacturing of product during the period. 

 

Cost of Goods Manufactured :— It is the cost of goods completed and transferred to finished goods inventory. 

 

Cost of Goods Sold :— It is the total cost of units sold during the period. 

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Cost Sheet
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education