Problem 2- 7 Preparing Financial Statements ; Cost Behaviour ( LOT – CC1 ; LO5 – CC9, 10; 106 – CC 1 1 , 12 )Various cost and sales data for Meriwell Company for the just-completed year follow !Finished goods inventory , beginning$ 36,000Finished goods inventory , ending72, 000Depreciation , factory21, 000Administrative expenses123, 000Utilities , factory*12, 000Maintenance , factory$8, 000Supplies , factory13, 000Insurance , factory5, 6.00Purchases of raw materials141, 000Raw materials inventory , beginning14, 0:00Raw materials inventory , ending8,000Direct labour$.5, 000Indirect labour13, 000Work – in- process inventory , beginning23, 000Work – in – process inventory , ending35, 000Sales50.0, 000Selling Expenses$5, 000
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