Question

. The following selected data for March were taken from Rubenstein Company's financial statements:

	Cost of goods available for sale....................	P65,000
	Manufacturing overhead..............................	P20,000
	Cost of goods manufactured........................	P51,000
	Finished goods inventory, ending.................	P10,000
	Direct materials used..................................	P15,000
	Sales..........................................................	P105,000
	Selling and administrative expenses.............	P30,000
	Direct labor................................................	P20,000
	Work in process inventory, beginning...........	P0

1-A. The gross margin was ________

1-B. The beginning finished goods inventory was _______

1-C. The ending Work in process Inventory was _____

Answer 1

1-A)Cost of goods sold = Cost of goods available for sale- Finished goods inventory, ending

                    = 65000 - 10000

                    = 55000

Now,

Gross margin =sales -cost of goods sold

          = 105000 -55000

          = $ 50000

B)

Cost of goods available for sales =Beginning finished goods inventory + Cost of goods manufactured

               65000 = Beginning finished goods inventory + 51000

              Beginning finished goods inventory = 65000 -51000

                                                  = $ 14000

Beginning finished goods inventory =$ 14000

C)

Total manufacturing cost for the period =Direct material used +Direct labor +manufacturing overhead

                  = 15000 + 20000 +20000

                  = 55000

Now,

Cost of goods manufactured = beginning work in process inventory + Total manufacturing cost for the period-Ending work in process inventory

51000 = 0 + 55000 - Ending work in process inventory

Ending work in process inventory = 55000- 51000

                             = 4000

The ending Work in process Inventory =4000