Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
|
Case |
||
|
1 |
2 |
|
|
Direct Materials Used |
$ 7,600 |
$ (g) |
|
Direct Labor |
5,000 |
8,000 |
|
Manufacturing Overhead |
8,000 |
4,000 |
|
Total Manufacturing Costs |
(a) |
18,000 |
|
Beginning Work in Process Inventory |
1,000 |
(h) |
|
Ending Work in Process Inventory |
(b) |
3,000 |
|
Sales |
24,500 |
(i) |
|
Sales Discounts |
2,500 |
1,400 |
|
Cost of Goods Manufactured |
17,000 |
22,000 |
|
Beginning Finished Goods Inventory |
(c) |
3,300 |
|
Goods Available for Sale |
18,000 |
(j) |
|
Cost of Goods Sold |
(d) |
(k) |
|
Ending Finished Goods Inventory |
3,400 |
2,500 |
|
Gross Profit |
(e) |
7,000 |
|
Operating Expenses |
2,500 |
(l) |
|
Net Income |
(f) |
5,000 |
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 $4,000, Receivables (net) $15,000, Raw Materials $600, and Prepaid Expenses $400.