Fairbain Corporation was newly formed early in 20X1. Thefollowing information relates to the full year:
Raw materials purchased (net) $3,000,000 Direct labor costs2,000,000 Factory overhead 1,500,000 Selling, general &administrative 700,000
80% of the available raw material was transferred intoproduction. 75% of the work in process was completed. 90% of thefinished goods were sold. 10% of factory overhead related todepreciation. 20% of SG&A related to depreciation.
(a) How much is in ending inventory for (1) raw materials, (2)work in process, and (3) finished goods?
(b) How much is in (1) cost of goods sold and (2) SG&Aexpense for the period?
(c) How much of the total depreciation for the period is chargedagainst income during the period?
