(TCO A) The following data (in thousands of dollars) have been taken from the accounting record of the Marroon Corporati

SOLUTION BY CHARTERED ACCOUNTANT

(TCO A) The following
data (in thousands of dollars) have been taken from the accounting record of
the Marroon Corporation for the just-completed year.

Sales

1,200

Raw materials
inventory, beginning

25

Raw materials
inventory,
ending
50

Purchases of raw
materials
180

Direct
labor
230

Manufacturing
overhead

250

Administrative
expenses

400

Selling
expenses
200

Work-in-process
inventory,
beginning
150

Work-in process
inventory,
ending
120

Finished goods
inventory,
beginning
100

Finished goods
inventory,
ending
110

Use the above data to
prepare (in thousands of dollars) a schedule of cost of goods manufactured and
a Schedule of Cost of Goods Sold for the year. In addition, what is the impact
on the financial statement if the ending finished goods inventory is
overstated or understated?