Answer:
I solved this manually. please try to follow up with the calculations.
ending inventory balance of
a. Raw material = $31000
b. work in progress = $49000
c. finished goods = $19000
Explanation:
<u>for</u><u> </u><u>raw</u><u> </u><u>material</u><u>:</u><u>-</u>
balance at beginning 30,000 + purchase of 125000 - issue of 124000
= 30000+125000-124000
= 31,000
the ending balance is 31000
<u>for work in progress inventory:-</u>
beginning inventory 45000 + 124000 current cost of issued material + 162000 direct wages + overhead 24000
= 45000+124000+162000+24000
= $355000
we subtract 306000 costs of goods manufactured from this value
= $355000-306000
= 49000 wip ending balance
<u>for</u><u> </u><u>finish</u><u>ed</u><u> </u><u>goods</u><u> </u><u>inven</u><u>tory</u><u>:</u><u>-</u>
begining inventory 14000 + 306000 costs of goods manufactured - 301000 costs of goods sold
= 14000+306000-301000
= $19000
<u>2</u><u>.</u><u> </u><u>schedule</u><u> for</u><u> </u><u>costs</u><u> </u><u>of</u><u> </u><u>goods</u><u> </u><u>manu</u><u>factured</u><u>:</u><u>-</u>
beginning inventory 30000 + purchase 125000 - ending inventory
= 30000+125000-31000
= 124000
124,000+162000 labour cost+24000
<u>total cost of manufacturing = 310000</u>
310000+begining wip of 45,000 - ending inventory of 49000
= 310000+45000-49000
= 306,000 costs of goods manufactured
we add this value to beginning inventory of finished goods-ending inventory
= 306000+14000-19000
= $301000 costs of goods sold
3. income statement:-
revenue of 400000 - 301000 costs of good sold = 99000
99000-36000 selling expenses
= $63000
