The balance in Sedona Companys raw materials inventory account was $110,000 at the beginning of September and $135,000 at the end of September.

Schedule of Raw Materials Placed in Production. The balance in Sedona Company’s raw materials inventory account was $110,000 at the beginning of September and $135,000 at the end of September. Raw materials purchased during the month totaled $50,000. Sedona used $8,000 in indirect materials for the month.
Required:	Unlocked Work Area:
Prepare a schedule of raw materials placed in production for the month of September. [hint: See figure 1.7 in text]

Sedona Company
Schedule of Raw Materials Placed in Production
Month Ended, September 30

Schedule of Cost of Goods Manufactured. The balance in Reid Company’s work-in-process inventory account was $300,000 at the beginning of March and $320,000 at the end of March. Manufacturing costs for the month follow. [hint: See figure 1.7 in text]

Direct materials (from the schedule of raw materials placed in production)	40,000	Unlocked Work Area:
Direct labor	70,000
Manufacturing overhead	200,000

Required:
Prepare a schedule of cost of goods manufactured for the month of March.

Reid Company
Schedule of Cost of Goods Manufactured
Month Ended, March 31

Schedule of Cost of Goods Sold. The balance in Blue Oak Company’s finished goods inventory account was $25,000 at the beginning of September and $28,000 at the end of September. Cost of goods manufactured for the month totaled $17,000.

Required:
Prepare a schedule of cost of goods sold for the month of September. [hint: See figure 1.7 in text]		Unlocked Work Area:


Blue Oak Company
Schedule of Cost of Goods Sold
Month Ended, September 30

Income Statement. Auto Products, Inc., had the following activity for the month of October.

Sales revenue	1,100,000.00
Selling expenses	300,000.00
General and administrative expenses	230,000.00
Cost of goods sold	475,000.00
		Unlocked Work Area:
Required:
Prepare an income statement for the month of October. [hint: See figure 1.8 in text]



Auto Products Inc
Income Statement
Month Ended, October 31

Income Statement and Supporting Schedules. The following financial information is for Industrial Company. (Note that the most current financial information is presented in the first column.)

	31-Dec-17	31-Dec-16
Raw materials inventory	24,000	30,000
Work-in-process inventory	1,800,000	1,650,000
Finished goods inventory	1,050,000	1,230,000

Of the total raw materials placed in production for the year, $36,000 was for indirect materials. Industrial had $3,795,000 in sales for the year ended December 31, 2017. The company also had the following costs for the year:

Selling	270,000
General and administrative	720,000
Raw materials purchases	300,000
Direct labor used in production	375,000
Manufacturing overhead	1,890,000

Required:
1. Prepare a schedule of raw materials placed in production for the year ended December 31, 2017.
2. Prepare a schedule of cost of goods manufactured for the year ended December 31, 2017.
3. Prepare a schedule of cost of goods sold for the year ended December 31, 2017.
4. Prepare an income statement for the year ended December 31, 2017.
5. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.)


Industrial Company			Unlocked Work Area
Schedule of Raw Materials Placed in Production
Year Ended, December 31, 2017










Industrial Company
Schedule of Cost of Goods Manufactured
Year Ended, December 31, 2017












Industrial Company
Schedule of Cost of Goods Sold
Year Ended, December 31, 2017








Industrial Company
Income Statement
Year Ended, December 31, 2017










5. Describe the three types of costs included in cost of goods sold on the income statement. (Dollar amounts are not necessary in your descriptions.)

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