Question

Determine the missing amounts in each of the following independent cases.

Case A Case B Case C Beginning inventory, raw material 98,000 7,500 Ending inventory, raw material 199,000 34,000 Purchases of raw material 295,000 274,000 Direct material used 235,000 323,000 Direct labor 395,000 72,000 Manufacturing overhead 595,000 99,000 Total manufacturing costs 1,135,000 1,130,000 222,000 Beginning inventory, work in process 89,000 79,000 Ending inventory, work in process 124,000 4,400 Cost of goods manufactured 1,088,000 225,000 Beginning inventory, finished goods 195,000 139,000 Cost of goods available for sale 241,000 Ending inventory, finished goods 22,000 Cost of goods sold 1,185,000 1,066,000 Sales 430,000 Gross margin 529,000 529,000 Selling and administrative expenses 263,000 Income before taxes 395,000 64,000 Income tax expense 99,000 160,000 Net income 37,000

Answer 1

	Case A	Case B	Case C
Beginning inventory, raw material	1,39,000	98,000	7,500
Ending inventory, raw material	1,99,000	49,000	34,000
Purchases of raw material	2,95,000	2,74,000	77,500
Direct material used	2,35,000	3,23,000	51,000
Direct labor	3,05,000	3,95,000	72,000
Manufacturing overhead	5,95,000	4,12,000	99,000
Total manufacturing costs	11,35,000	11,30,000	2,22,000
Beginning inventory, work in process	89,000	79,000	7,400
Ending inventory, work in process	1,36,000	1,24,000	4,400
Cost of goods manufactured	10,88,000	10,85,000	2,25,000
Beginning inventory, finished goods	1,95,000	1,39,000	16,000
Cost of goods available for sale	12,83,000	12,24,000	2,41,000
Ending inventory, finished goods	98,000	1,58,000	22,000
Cost of goods sold	11,85,000	10,66,000	2,19,000
Sales	17,14,000	15,95,000	4,30,000
Gross margin	5,29,000	5,29,000	2,11,000
Selling and administrative expenses	1,34,000	2,63,000	1,47,000
Income before taxes	3,95,000	2,66,000	64,000
Income tax expense	99,000	1,60,000	27,000
Net income	2,96,000	1,06,000	37,000
Workings:
	Case A		Case B		Case C
a.		a		a.
Direct material used	2,35,000	Beginning inventory, raw material	98,000	Total manufacturing costs	2,22,000
Add:		Add:		Less:
Ending inventory, raw material	1,99,000	Purchases of raw material	2,74,000	Direct labor	72,000
Less:		Less:		Manufacturing overhead	99,000
Purchases of raw material	2,95,000	Direct material used	3,23,000
				Direct material used	51,000
Beginning inventory, raw material	1,39,000	Ending inventory, raw material	49,000
				b.
b.		b.
Total manufacturing costs	11,35,000			Direct material used	51,000
Less:		Total manufacturing costs	11,30,000	Add:
Direct material used	2,35,000	Less:		Ending inventory, raw material	34,000
Manufacturing overhead	5,95,000	Direct material used	3,23,000	Less:
		Direct labor	3,95,000	Beginning inventory, raw material	7,500
Direct labor	3,05,000
		Manufacturing overhead	4,12,000	Purchases of raw material	77,500
c.
Total manufacturing costs	11,35,000	c.		c.
Add:				Cost of goods manufactured	2,25,000
Beginning inventory, work in process	89,000	Total manufacturing costs	11,30,000	Add:
Less:		Add:		Ending inventory, work in process	4,400
Cost of goods manufactured	10,88,000	Beginning inventory, work in process	79,000	Less:
		Less:		Total manufacturing costs	2,22,000
Ending inventory, work in process	1,36,000	Ending inventory, work in process	1,24,000
				Beginning inventory, work in process	7,400
d.		Cost of goods manufactured	10,85,000
Beginning inventory, finished goods	1,95,000			d.
Add:		d.		Cost of goods available for sale	2,41,000
Cost of goods manufactured	10,88,000			Less:
		Cost of goods manufactured	10,85,000	Cost of goods manufactured	2,25,000
Cost of goods available for sale	12,83,000	Add:
		Beginning inventory, finished goods	1,39,000	Beginning inventory, finished goods	16,000
Less:
Cost of goods sold	11,85,000	Cost of goods available for sale	12,24,000	e.
		Less:		Cost of goods available for sale	2,41,000
Ending inventory, finished goods	98,000	Cost of goods sold	10,66,000	Less:
				Ending inventory, finished goods	22,000
e.		Ending inventory, finished goods	1,58,000
				Cost of goods sold	2,19,000
Cost of goods sold	11,85,000	e.
Add:				f.
Gross margin	5,29,000	Cost of goods sold	10,66,000	Sales	4,30,000
		Add:		Less:
Sales	17,14,000	Gross margin	5,29,000	Cost of goods sold	2,19,000
f.		Sales	15,95,000	Gross margin	2,11,000
Gross margin	5,29,000
Less:				g.
Income before taxes	3,95,000	f.		Gross margin	2,11,000
				Less:
Selling and administrative expenses	1,34,000	Gross margin	5,29,000	Income before taxes	64,000
		Less:
g.		Selling and administrative expenses	2,63,000	Selling and administrative expenses	1,47,000
Income before taxes	3,95,000	Income before taxes	2,66,000	h.
Less:				Income before taxes	64,000
Income tax expense	99,000	g.		Less:
				Net income	37,000
Net income	2,96,000	Income before taxes	2,66,000
		Less:		Income tax expense	27,000
		Income tax expense	1,60,000
		Net income	1,06,000