Question

Determine the missing amounts in each of the following independent cases

		Case A		Case B		Case C
Beginning inventory, raw material	$	-------	$	68,000	$	45,000
Ending inventory, raw material		184,000		-----		19,000
Purchases of raw material		220,000		259,000		------
Direct material used		160,000		259,000		-------
Direct labor		------		320,000		64,500
Manufacturing overhead		520,000		------		84,000
Total manufacturing costs		1,060,000		1,055,000		190,000
Beginning inventory, work in process		74,000		64,000		-----
Ending inventory, work in process		-----		109,000		2,900
Cost of goods manufactured		1,058,000		----		195,000
Beginning inventory, finished goods		120,000		124,000		-----
Cost of goods available for sale		----		-----		209,000
Ending inventory, finished goods		------		-----		14,500
Cost of goods sold		1,110,000		1,006,000		----
Sales		----		----		280,000
Gross V Determine the missing amounts in each of the following independent cases Case A Case B Case C Beginning inventory, raw material $ ------- $ 68,000 $ 45,000 Ending inventory, raw material 184,000 ----- 19,000 Purchases of raw material 220,000 259,000 ------ Direct material used 160,000 259,000 ------- Direct labor ------ 320,000 64,500 Manufacturing overhead 520,000 ------ 84,000 Total manufacturing costs 1,060,000 1,055,000 190,000 Beginning inventory, work in process 74,000 64,000 ----- Ending inventory, work in process ----- 109,000 2,900 Cost of goods manufactured 1,058,000 ---- 195,000 Beginning inventory, finished goods 120,000 124,000 ----- Cost of goods available for sale ---- ----- 209,000 Ending inventory, finished goods ------ ----- 14,500 Cost of goods sold 1,110,000 1,006,000 ---- Sales ---- ---- 280,000 Gross margin 514,000 514,000 ----- Selling and administrative expenses ---- 233,000 ---- Income before taxes 320,000 --- 49,000 Income tax expense 84,000 145,000 --- Net income --- ---- 29,500 margin		514,000		514,000		-----
Selling and administrative expenses		----		233,000		----
Income before taxes		320,000		---		49,000
Income tax expense		84,000		145,000		---
Net income		---		----		29,500

Answer 1

Computation of missing amounts in each of the following cases:

		Case A		Case B		Case C
Beginning inventory, raw material	$	124,000 (160,000+184,000-220,000)	$	68,000	$	45,000
Ending inventory, raw material		184,000		68,000 (259,000+68,000) - 259,000		19,000
Purchases of raw material		220,000		259,000		15,500 (41,500+19,000-45,000)
Direct material used		160,000		259,000		41,500 190,000 - (64,500+84,000)
Direct labor		380,000 1,060,000-(160,000+520,000)		320,000		64,500
Manufacturing overhead		520,000		476,000 1,055,000 - (259,000+320,000)		84,000
Total manufacturing costs		1,060,000		1,055,000		190,000
Beginning inventory, work in process		74,000		64,000		7,900 (195,000+2,900)-190,000
Ending inventory, work in process		76,000 (74,000+1,060,000)-1,058,000)		109,000		2,900
Cost of goods manufactured		1,058,000		1,010,000 (64,000+1,055,000)- 109,000		195,000
Beginning inventory, finished goods		120,000		124,000		14,000 (209,000 - 195,000)
Cost of goods available for sale		1,178,000 (120,000+1,058,000)		1,134,000 (124,000+1,010,000)		209,000
Ending inventory, finished goods		68,000 (1,178,000 - 1,110,000)		128,000 (1,134,000 - 1,006,000)		14,500
Cost of goods sold		1,110,000		1,006,000		194,500 (209,000 - 14,500)
Sales		1,624,000 (1,110,000+514,000)		1,520,000 (1,006,000+514,000)		280,000
Gross margin		514,000		514,000		85,500 (280,000 - 194,500)
Selling and administrative expenses		194,000 (514,000 - 320,000)		233,000		36,500 (85,500 - 49,000)
Income before taxes		320,000		281,000 (514,000 - 233,000)		49,000
Income tax expense		84,000		145,000		19,500 (49,000 - 29,500)
Net income	$	236,000 (320,000 - 84,000)	$	136,000 (281,000 - 145,000)	$	29,500