I need help with understanding a statement of cost and incom

I need help with understanding a statement of cost and income statement based on the following information with details:

Accounting Hurricane Case

On September 10 of the current year, a hurricane struck Deep South City and the surrounding county. All of the inventory of Rawls Manufacturing was destroyed in the storm. You have been hired by the company to help with the insurance claims on the company’s losses. The company was able to provide you with the following information taken from a computer saved from the hurricane:

Inventories on August 31:

                Materials inventory                                        20,000

                Work-in-process inventory            4,000

                Finished goods inventory             14,000

Manufacturing activity from September 1 to 10:

                Direct material requisitions                                          70,000

              Direct materials purchased                              66,000

                Cost of goods sold                                                           150,000

Prime Costs used                                                             80,000

                Cost of goods manufactured                                      148,000                                

The overhead rate is 110% of direct materials costs.

Solution

Statement of Cost of Good Manufactured Work in process, Sep 1 4000 Direct Material inventory Sep 1 20000 Direct Material Purchases 66000 Direct Material Available 86000 Direct Material inventory Sep 30 (86000-70000) 16000 Direct Material used 70000 Direct Labor (80000-66000) 14000 Manufacturing overhead (70000*110%) 77000 Total Manufacturing cost 161000 Total work in process during the period 165000 Less Work in process, Sep 30 (165000-148000) 17000 Cost of Good Manufactured 148000 Statement of Cost of Good Sold Cost of Good Manufactured 148000 Add: finished Goods Inventory Sep 30 (150000+14000-148000) 16000 Cost of Good available for sales 164000 Less: finished Goods Inventory Sep 1 14000 Cost of Good sold 150000 If any doubt please comment