Big Valley Corporation Has Supplied the Following Information for the Year

Essay

Big Valley Corporation has supplied the following information for the year ended December 31, 20X0: $\begin{array}{ll}\text { Direct labor } & 16,480 \\\text { Direct material purchases } & 19,260 \\\text { General and administrative exp enses } & 14,240 \\\text { Indirect manufacturing costs } & 16,780 \\\text { Selling exp en ses } & 13,520 \\\text { Beginning direct materials inventory } & 2,460 \\\text { Direct materials used } & 2,900\end{array}$ Big Valley Corporation produces 8,000 units. There was no beginning balance or ending balance work- in- process inventory. Ending inventory consisted of 1,000 finished units.
Required:
a. Prepare the inventories section of the balance sheet.
b. Compute the cost of goods sold.