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In: Accounting

Problem 19-3A (Part Level Submission) Incomplete manufacturing costs, expenses, and selling data for two different cases...

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

Solutions

Expert Solution

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


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