“Happy Feet Shoe Company makes loafers. During the most recent year, Happy Feet incurred total manufacturing costs of $ 21 comma 800,000. Of this amount, $ 2,100,000 was direct materials used and $ 14,800,000 was direct labor. Beginning balances for the year were Raw Materials Inventory, $ 900,000; Work-in-Process Inventory, $ 1,200,000; and Finished Goods Inventory, $ 1,000,000. At the end of the year, balances were Raw Materials Inventory, $ 800,000; Work-in-Process Inventory, $ 1,800,000; and Finished Goods Inventory, $ 690,000.RequirementsAnalyze the inventory accounts to determine:1. Cost of raw materials purchased during the year.2. Cost of goods manufactured for the year.3. Cost of goods sold for the year.”,”1. Cost of raw materials purchased during the year.Direct Materials: Direct Materials Used $2,100,000 Beginning Raw Materials Inventory: (900,000) Ending Raw Materials Inventory: 800,000Purchases: $2,000,0002. Cost of goods manufactured for the year.Work-in-Process Beginning Work-in-Process Inventory: $1,200,000Direct Materials Used: $2,100,000Direct Labor: 14,800,000Manufacturing Overhead: 4,900,000Total Manufacturing Costs Incurred during the Year: 21,800,000Total Manufacturing Costs to Account For: 23,000,000Ending Work-in-Process Inventory: (1,800,000)Cost of Goods Manufactured: $21,200,0003. Cost of goods sold for the year.Finished GoodsBeginning Finished Goods Inventory: $1,000,000Cost of Goods Manufactured: 21,200,000Cost of Goods Available for Sale: 22,200,000Ending Finished Goods Inventory: (690,000)Cost of Goods Sold: $21,510
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