Question

Indicate the missing amount for each letter.

		Case
		1			2
Direct materials used		$9,850			$enter a dollar amount	(g)
Direct labor		5,460			9,060
Manufacturing overhead		9,030			4,350
Total manufacturing costs		enter a dollar amount	(a)		16,870
Beginning work in process inventory		1,490			enter a dollar amount	(h)
Ending work in process inventory		enter a dollar amount	(b)		3,300
Sales revenue		25,200			enter a dollar amount	(i)
Sales discounts		2,720			2,120
Cost of goods manufactured		18,100			22,160
Beginning finished goods inventory		enter a dollar amount	(c)		3,870
Goods available for sale		22,510			enter a dollar amount	(j)
Cost of goods sold		enter a dollar amount	(d)		enter a dollar amount	(k)
Ending finished goods inventory		4,340			2,630
Gross profit		enter a dollar amount	(e)		7,620
Operating expenses		3,350			enter a dollar amount	(l)
Net income		enter a total net income amount	(f)		5,350

eTextbook and Media

  

  

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

CASE 1 Cost of Goods Manufactured Schedule
				$enter a dollar amount
		$enter a dollar amount
		enter a dollar amount
		enter a dollar amount
				enter a total of the three previous amounts
				enter a total amount for this part of the schedule
				enter a dollar amount
				$enter a total amount for this schedule

eTextbook and Media

  

  

Prepare an income statement for Case 1.

CASE 1 Income Statement
		$enter a dollar amount
		enter a dollar amount
				$enter a total amount for section one
		enter a dollar amount
		enter a dollar amount
		enter a total of the two previous amounts
		enter a dollar amount
				enter a total amount for section two
				enter a total amount for the first part
				enter a dollar amount
				$enter a total net income or loss amount

Prepare 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 $3,330, Receivables (net) $15,440, Raw Materials $640, and Prepaid Expenses $410. (List Current Assets in order of liquidity.)

CASE 1 (Partial) Balance Sheet
				$enter a dollar amount
				enter a dollar amount
		$enter a dollar amount
		enter a dollar amount
		enter a dollar amount
				enter a subtotal of the three previous amounts
				enter a dollar amount
				$enter a total amount for this section

Answer 1

Case-I

Total Manufacturing Cost= Direct Material Used + Direct Labour + Manufacturign Overhead

=9850+5460+9030=24340

Ending WIP= Beginning WIP + Total Manufacturign Cost- Cost of Goods Manufactured

=1490+24340-18100=7730

Cost of Goods Sold= Goods Available fro Sale- Ending Finshed Goods Inventory

=22510-4340= $18170

Beg Finshed Goods= Goods Available for Sale- Cost of Goods Manufactured

=22510-18100=4410

Gross Profit= Sales Revenue- Sales Discount- Cost of Goods Sold

=25200-2720-18170=$4310

Net Income = Gross Profit- Operating Expense

=4310-3350=960

Case-2

Direct Material Used =Total Manufacturign cost - Direct Labour + Manufacturign Overhead

=16870-9060-4350=$3460

Beginning WIP =( Cost of Goods Manufactured+Ending WIP)- total Manufacturing cost

=(22160+3300)-16870= $8590

Cost of Goods Sold = Sales Revenue- Sales Discount- Gross Profit

=25200-2720-7620= $14860

Goods Available fro Sale= Cost of Goods Sold + Ending Finshed Goods Inventory

=14860+2630=$17490

Operating Expense= Gross Profit- Net Income

=7620-5350=2270

Schedule Of Cost of Good Manufactured- Case-1
Total raw material used		$9,850.00
Direct Labor		$5,460.00
Total Manufacturing Overhead		$9,030.00
Total Manufacturing Cost		$24,340.00
Add: Beginning Wip		$1,490.00
		$25,830.00
Less: Ending WIP		$7,730.00
Cost of Goods Manufactured		$18,100.00
Income Statement- Case 1
Sales	$25,200.00
Less: Sales Discount	-$2,720.00	$22,480.00
Cost of Good Sold
Beginning Finished Goods Inventory	$4,410.00
Cost of Goods manufactured	$18,100.00
Cost of Goods Availble for sale	$22,510.00
Less: Ending Finished Goods Inventorr	$4,340.00
Cost of Good Sold		$18,170.00
Gross Profit		$4,310.00
Operating Expense		-$3,350.00
Net Income		$960.00
Balance sheet- Case-1
Current Asset
Cash		$3,330.00
Receivable		$15,440.00
Prepaid Expense		$410.00
Finshed Goods		$4,340.00
Ending WIP		$7,730.00
Raw Material		$640.00
Total Current asset		$31,890.00