Question

he following data (in thousands of dollars) have been taken fromthe 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 schedule ofCost of Goods Manufactured and a Schedule of Cost of Goods Sold forthe year. In addition, elaborate on the relationship between theseschedules as they relate to the flow of product costs in amanufacturing company