Question

Indicate the missing amount for each letter.

		Case
		1			2
Direct materials used		$9,990			$enter a dollar amount	(g)
Direct labor		5,100			8,360
Manufacturing overhead		8,980			4,100
Total manufacturing costs		enter a dollar amount	(a)		16,420
Beginning work in process inventory		1,150			enter a dollar amount	(h)
Ending work in process inventory		enter a dollar amount	(b)		3,800
Sales revenue		25,430			enter a dollar amount	(i)
Sales discounts		3,000			2,430
Cost of goods manufactured		17,920			22,980
Beginning finished goods inventory		enter a dollar amount	(c)		4,180
Goods available for sale		22,810			enter a dollar amount	(j)
Cost of goods sold		enter a dollar amount	(d)		enter a dollar amount	(k)
Ending finished goods inventory		4,190			3,100
Gross profit		enter a dollar amount	(e)		7,460
Operating expenses		2,900			enter a dollar amount	(l)
Net income		enter a dollar amount	(f)		5,190

Answer 1

Case 1:

Total manufacturing costs = Direct material + Direct labor + Manufacturing overhead

Total manufacturing costs = $9,990+5,100+8,980 = $24,070

Ending work in process = Beginning work in process+Total manufacturing costs-Cost of goods manufactured

Ending work in process = $1,150+24,070-17,920 = $7,300

Beginning finished goods inventory = Cost of goods available for sale-Cost of goods manufactured

Beginning finished goods inventory = $22,810-17,920 = $4,890

Cost of goods sold = Beginning finished goods inventory+Cost of goods manufactured-Ending finished goods inventory

Cost of goods sold = $4,890+17,920-4,190 = $18,620

Gross profit = Sales revenue-Sales discount-Cost of goods sold

Gross profit = $25,430-3,000-18,620 = $3,810

Net income = Gross margin - Operating expenses

Net income = $3,810-2,900 = $910

Case 2:

Direct material used = Total manufacturing costs - Direct labor - Manufacturing overhead

Direct material used = $16,420-8,360-4,100 = $3,960

Beginning work in process = Enidng work in process+Cost of goods manufactured-Total manufacturing costs

Beginning work in process = $3,800+22,980-16,420 = $10,360

Goods available for sale = Beginning finished goods inventory+Cost of goods manufactured

Goods available for sale = $4,180+22,980 = $27,160

Cost of goods sold = Goods available for sale - Ending finished goods inventory

Cost of goods sold = $27,160 - 3,100 = $24,060

Sales revenue = Gross profit +Cost of goods sold + Sales discount

Sales revenue = $7,460+24,060+2,430 = $33,950

Operating expenses = Gross profit - Net income

Operating expenses = $7,460-5,190 = $2,270