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Question - Statement of Cost of Goods Manufactured from Percent Relationships - Information about Blue Line Products Company for the year ending December 31 follows:
Sales equal $580,000.
Direct materials used total $105,000.
Manufacturing overhead is 200% of direct labor dollars.
The beginning inventory of finished goods is 25% of the cost of goods sold.
The ending inventory of finished goods is 1.5 times beginning inventory.
The gross profit is 20% of sales.
There is no beginning or ending work-in-process.
Required - Prepare a statement of cost of goods manufactured for the year. (Hint: Prepare an analysis of changes in Finished Goods Inventory.)
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