The following data (in thousands of dollars) have been taken from the accounting records of the Maroon 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 statements if the ending finished goods inventory is overstated or understated?