Find the Unknown Information

After a computer failure, you are trying to reconstruct some financial results for the year just ended. While you know that backups are available, it will take too long to get the information you want. You have been able to collect the following information:

Direct materials inventory, January 1 (Beginning)

$ 16,000

Direct materials inventory, December 31 (Ending)

12,000

Work in process inventory, January 1 (Beginning)

21,200

Work in process inventory, December 31 (Ending)

10,000

Finished goods inventory, December 31 (Ending)

14,080

Purchases of direct materials

38,400

Cost of goods manufactured during this year

88,800

Total manufacturing costs

77,600

Cost of goods sold

87,040

Gross margin

52,480

Direct labor

12,160

Manufacturing overhead

23,040

Average selling price per unit

8

Required

Find the following:

a. Finished goods inventory, January 1.

b. Direct materials used for the year.

c. Gross margin percentage (as a percentage of sales).