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.