The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year.
Sales | 1,150 |
Raw materials inventory, beginning | 15 |
Raw materials inventory, ending | 40 |
Purchases of raw materials | 150 |
Direct labor | 250 |
Manufacturing overhead | 300 |
Administrative expenses | 500 |
Selling expenses | 300 |
Work in process inventory, beginning | 100 |
Work in process inventory, ending | 150 |
Finished goods inventory, beginning | 80 |
Finished goods inventory, ending | 120 |
Use the above 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, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated