Question

Indicate the missing amount of different cost items, and prepare a condensed cost of goods manufactured schedule, an income statement, and a partial balance sheet. Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows:

Case

  1 2

Direct Materials Used $ 6,300 $   (g)

Direct Labour $3,000 $4,000

Manufacturing Overhead $6,000 $5,000

Total Manufacturing Costs (a) $ 16,000

Beginning Work in Process Inventory $1,000 (h)

Ending Work in Process Inventory (b) $ 2,000

Sales $22,500 (i)

Sales Discounts $1,500 $1,200

Cost of Goods Manufactured $15,800 $20,000

Beginning Finished Goods Inventory. (c) $5,000

Goods Available for Sale $18,300 (j)

Cost of Goods Sold (d) (k)

Ending Finished Goods Inventory $1,200 $2,500

Gross Profit (e) 6,000

Operating Expenses 2,700 (l)

Net Income (f) 2,200

Instructions

(a) Indicate the missing amount for each letter.

(b) Prepare a condensed cost of goods manufactured schedule for Case 1.

(c) Prepare an income statement and the current assets section of the balance sheet for Case 1.

Assume that in Case 1 the other items in the current assets section are as follows: cash $3,000, receivables (net) $10,000, raw materials $700, and prepaid expenses $200.

Answer 1