Case 1
Direct Materials Used $8,300
Direct Labor 3,000
Manufacturing Overhead 6,000
Total Manufacturing Costs (a)
Beginning Work in Process 1,000
Ending Work in Process Inventory (b)
Sales 22,500
Sales Discounts 1,500
Cost of Goods Manufactured 15,800
Beginning Finished Goods Inventory (c)
Goods Available for sale 17,300
Cost of Goods Sold (d)
Ending Finished Goods Inventory 1,200
Gross Profit (e)
Operating Expenses 2,700
Net Income (f)
Case 2
Direct Materials Used (g)
Direct Labor 4,000
Manufacturing Overhead 5,000
Total Manufacturing Costs 20,000
Beginning Work in Process (h)
Ending Work in Process Inventory 2,000
Sales (i)
Sales Discounts 1,200
Cost of Goods Manufactured 21,000
Beginning Finished Goods Inventory 4,000
Goods Available for sale (j)
Cost of Goods Sold (k)
Ending Finished Goods Inventory 2,500
Gross Profit 6,000
Operating Expenses (l)
Net Income 3,200
Instructions
(a) Indicate the missing amount for each letter.
(b) Prepare a condensed cost of goods manufactured schedule for Case 1.
(c) Prepare an income statement and 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 $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.
2 answers