Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
|
Case |
||
|
1 |
2 |
|
|
Direct materials used |
$ 9,600 |
$ (g) |
|
Direct labor |
5,000 |
8,000 |
|
Manufacturing overhead |
8,000 |
4,000 |
|
Total manufacturing costs |
(a) |
16,000 |
|
Beginning work in process inventory |
1,000 |
(h) |
|
Ending work in process inventory |
(b) |
3,000 |
|
Sales revenue |
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 |
20,000 |
a) |
|
Cost of goods sold |
(d) |
(k) |
|
Ending finished goods inventory |
3,400 |
2,500 |
|
Gross profit |
(e) |
7,000 |
|
Operating expenses |
2,500 |
|
|
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.