At May 31, 2020, the accounts of Lopez Company show the following.
1. May 1 inventories—finished goods $15,300, work in process $15,800, and raw materials $9,000.
2. May 31 inventories—finished goods $9,800, work in process $16,300, and raw materials $7,700.
3. Debit postings to work in process were direct materials $63,000, direct labor $51,800, and manufacturing overhead applied $41,700. (Assume that overhead applied was equal to overhead incurred.)
4. Sales revenue totaled $216,100.
Prepare a condensed cost of goods manufactured schedule.
LOPEZ COMPANY
Cost of Goods Manufactured Schedule
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Prepare an income statement for May through gross profit.
LOPEZ COMPANY
(Partial) Income Statement
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Indicate the balance sheet presentation of the manufacturing inventories at May 31, 2020.
LOPEZ COMPANY
(Partial) Balance sheet

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Renting provides greater flexibility but can lead to higher costs in the long term.answer: b) or the second option.

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