In: Accounting
Problem 19-3A (Part Level Submission) Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Collapse question part (a) Indicate the missing amount for each letter. Case 1 2 Direct materials used $7,700 $ Direct labor 5,380 8,160 Manufacturing overhead 8,370 4,120 Total manufacturing costs 18,030 Beginning work in process inventory 1,410 Ending work in process inventory 2,550 Sales revenue 24,470 Sales discounts 2,530 1,350 Cost of goods manufactured 16,950 21,820 Beginning finished goods inventory 3,230 Goods available for sale 18,050 Cost of goods sold Ending finished goods inventory 3,240 2,510 Gross profit 6,620 Operating expenses 2,930 Net income 4,820
Case 1:
Total manufacturing costs = Direct materials used + Direct labor
+ Manufacturing overhead
Total manufacturing costs = $7,700 + $5,380 + $8,370
Total manufacturing costs = $21,450
Cost of goods manufactured = Beginning work in process inventory
+ Total manufacturing costs - Ending work in process
inventory
$16,950 = $1,410 + $21,450 - Ending work in process inventory
Ending work in process inventory = $5,910
Goods available for sale = Cost of goods manufactured +
Beginning finished goods inventory
$18,050 = $16,950 + Beginning finished goods inventory
Beginning finished goods inventory = $1,100
Cost of goods sold = Goods available for sale - Ending finished
goods inventory
Cost of goods sold = $18,050 - $3,240
Cost of goods sold = $14,810
Gross profit = Sales revenue - Sales discount - Cost of goods
sold
Gross profit = $24,470 - $2,530 - $14,810
Gross profit = $7,130
Net income = Gross profit - Operating expenses
Net income = $7,130 - $2,930
Net income = $4,200
Case 2:
Total manufacturing costs = Direct materials used + Direct labor
+ Manufacturing overhead
$18,030 = Direct materials used + $8,160 + $4,120
Direct materials used = $5,750
Cost of goods manufactured = Beginning work in process inventory
+ Total manufacturing costs - Ending work in process
inventory
$21,820 = Beginning work in process inventory + $18,030 -
$2,550
Beginning work in process inventory = $6,340
Goods available for sale = Cost of goods manufactured +
Beginning finished goods inventory
Goods available for sale = $21,820 + $3,230
Goods available for sale = $25,050
Cost of goods sold = Goods available for sale - Ending finished
goods inventory
Cost of goods sold = $25,050 - $2,510
Cost of goods sold = $22,540
Gross profit = Sales revenue - Sales discount - Cost of goods
sold
$6,620 = Sales revenue - $1,350 - $22,540
Sales revenue = $30,510
Net income = Gross profit - Operating expenses
$4,820 = $6,620 - Operating expenses
Operating expenses = $1,800