Question

The following data (in thousands of dollars) have been takenfrom the accounting records of Karmana Corporation for thejust-completed year.

Sales...............................................................................................$1,500

Raw materials inventory, beginning...............................................$20

Raw materials inventory, ending..........................,.........................$40

Purchases of raw materials.............................................................$150

Direct labor.......................................................................................$180

Manufacturing overhead...............................................................$250

Administrative expenses...............................................................$100

Selling expenses.............................................................................$140

Work-in-process inventory, beginning........................................$80

Work-in-process inventory, ending.............................................$50

Finished goods inventory, beginning........................................$125

Finished goods inventory, ending...............................................$60

Use these data to prepare (in thousands of dollars) a scheduleof Cost of Goods Manufactured and a Schedule of Cost of Goods Soldfor the year. In addition, elaborate on the relationship betweenthese schedules as they relate to the flow of product costs in amanufacturing company.