Question

In the gray boxes above, indicate where each line item or expense would be found on (Cost of Goods Manufactured, Cost of Goods Sold, or Income Statement).

Bisby Company manufactures fishing rods. Below are the beginning balances for July of three key accounts: Raw materials inventory Work in process inventory Finished goods inventory $ 45,000 20,000 65,000 During July, the following expenses were incurred: $ $ $ Direct Labor Raw materials purchased Factory depreciation, insurance, supervisors etc Advertising and marketing Administrative wages Administrative depreciation and insurance 50,000 95,000 75,000 15,000 80,000 40,000 $ $ At the end of July, ending balances were: Raw materials inventory Work in process inventory Finished goods inventory 58,000 18,000 52,000 $

Answer 1

Beginning balances

Raw materials inventory	$45000	Cost of goods manufactured
Work in process inventory	$20000	Cost of goods manufactured
Finished goods inventory	$65000	Cost of goods sold

Expenses

Direct labor	$50000	Cost of goods manufactured
Raw materials purchased	$95000	Cost of goods manufactured
Factory depreciation, insurance, supervisors etc	$75000	Cost of goods manufactured
Advertising and marketing	$15000	Income statement
Administrative wages	$80000	Income statement
Administrative depreciation and insurance	$40000	Income statement

Ending balances

Raw materials inventory	$58000	Cost of goods manufactured
Work in process inventory	$18000	Cost of goods manufactured
Finished goods inventory	$52000	Cost of goods sold

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