It's Kinda China produces collectible pieces of art. The company's Raw material Inventory account includes the costs of both direct and indirect materials. Account balances for the company at the beginning and end of July 2008 follow:

Raw Materials Inventory $46,600 $34,800

Work in Process Inventory 73,200 60,000

Finished Goods Inventory 36,000 52,400

During the month, the company purchased $164,000 of raw material; direct material used during the period amounted to $128,000. Factory payroll costs for July were $197,000 of which 85 percent was related to direct labor.

Overhead charges for depreciation, insurance, utilities, and maintenance totaled $150,000 for July.

a. Prepare a schedule of cost of goods manufactured.

b. Prepare a schedule of cost of goods sold.