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welcome to cost of goods manufactured a different way with just t-accounts ! i dont teach a schedule very much in my classes because I dont think that thats what is about lets just go through the t-accounts and do the journal entries I am doing a problem here exercise 8 and i have made three accounts for inventory raw material working process and finished goods and those are the three on the balance sheet they are assets and have debit balances were going to take costs from raw materials into production start the work in process and then put them into finished goods when the goods themselves go into finished goods after that they leave the balance sheet and go to the income statement . so lets get started and beginning in inventories already put on paper we got those from last month and will have them this month so the things that increase raw material are purchasing more raw materials so the problem says purchases are 132 the debit side . if the raw material warehouse includ