The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just completed year.
|
Sales |
$950 |
|
Raw materials inventory, beginning |
$10 |
|
Raw materials inventory, ending |
$30 |
|
Purchases of raw materials |
$120 |
|
Direct labor |
$200 |
|
Manufacturing overhead |
$230 |
|
Administrative expenses |
$100 |
|
Selling expenses |
$140 |
|
Work in process inventory, beginning |
$70 |
|
Work in process inventory, ending |
$40 |
|
Finished goods inventory, beginning |
$100 |
|
Finished 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.