The Cost of Goods Sold for the Tricky Corporation for the Month

Essay

The cost of goods sold for the Tricky Corporation for the month of June was $450,000.Work-in-process inventory at the end of June was 95 percent of the work-in-process inventory at the beginning of the month.Overhead is 80 percent of the direct labour cost.During the month,$110,000 of direct materials were purchased.Revenues for Tricky were $600,000,and the selling and administrative costs were $70,000.Other information about Tricky's inventories and production for June was as follows:
$\text { Ending inventories -June } 30$
$\begin{array}{lr}\text { Direct materials } & \$ 19,000 \\\text { Work in process } & \\\text { Finished goods } & 105,000\end{array}$

$\text { Beginning inventories - June } 1$
$\begin{array}{lr}\text { Direct materials } & \$ 22,200 \\\text { Work in process } & 40,000 \\\text { Finished goods } & 208,500\end{array}$
a.Prepare a cost of goods manufactured and cost of goods sold statements.
b.Prepare an income statement.
c.What are the prime costs,conversion costs,and period costs?