Accounting Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct...

Accounting Company provided the following account balances for the year ended December 31 (all raw materials are used in production as direct materials):

Selling expenses                                                                $215,000

Purchases of raw materials                                                $260,000

Direct Labor                                                                          ??

Administrative expenses                                                     $160,000

Manufacturing overhead applied to work in process          $340,000

Total actual manufacturing overhead costs                         $350,000

Inventory balances at the beginning and end of the year were as follows:

                                                                                                Beginning of year     End of Year

Raw material                                                                                 $50,000                  $40,000

Work in Progress                                                                               ?

Finished goods                                                                               $30,000                         ?

The total manufacturing costs for the year were $675,000; the cost of good available for sale totaled $720,000; the unadjusted cost of goods sold totaled $665,000; and the net operating income was $35,000. The company’s overapplied or underapplied overhead is closed entirely to cost of goods sold.

Required:

Prepare schedules of cost of goods sold manufactured and cost of goods sold and an income.

(optional Hint: Prepare the income statement and schedule of cost of goods sold first followed by the schedule of cost of goods manufactured.)