Question

Determine the missing amounts in each of the following independent cases. Case A Case B 66,000 Case C 9,000 18,000 183,000 215,000 155,000 258,000 291,000 315,000 515,000 1,055,000 73,000 64,000 83,000 185,000 1,050,000 63,000 108,000 Beginning inventory, raw material Ending inventory, raw material Purchases of raw material Direct material used Direct labor Manufacturing overhead Total manufacturing costs Beginning inventory, work in process Ending inventory, work in process Cost of goods manufactured Beginning inventory, finished goods Cost of goods available for sale Ending inventory, finished goods Cost of goods sold Sales Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income 190,000 1,056,000 115,000 123,000 203,000 14,000 1,105,000 1,002,000 270,000 513,000 ces 513,000 231,000 315,000 83,000 + 48,000 144,000 29,000 < Prev 13 0

Answer 1

	Case A	Case B	Case C
Beginning inventory, raw materials	$123000	66000	9000
Ending inventory, raw materials	183000	33000	18000
Purchases of raw materials	215000	258000	47000
Direct materials used	155000	291000	38000
Direct labor	385000	315000	64000
Manufacturing overhead	515000	444000	83000
Total manufacturing costs	1055000	1050000	185000
Beginning inventory, work in process	73000	63000	7800
Ending inventory, work in process	72000	108000	2800
Cost of goods manufactured	1056000	1005000	190000
Beginning inventory, finished goods	115000	123000	13000
Cost of goods available for sale	1171000	1128000	203000
Ending inventory, finished goods	66000	126000	14000
Cost of goods sold	1105000	1002000	189000
Sales	1618000	1515000	270000
Gross margin	513000	513000	81000
Selling and administrative expenses	198000	231000	33000
Income before taxes	315000	282000	48000
Income tax expense	83000	144000	19000
Net income	232000	138000	29000

Case A

Beginning inventory, raw materials= Direct materials used+Ending inventory, raw materials-Purchases of raw material

= $155000+183000-215000= $123000

Direct labor= Total manufacturing costs-Direct materials used-Manufacturing overhead

= $1055000-155000-515000= $385000

Ending inventory, work in process= Beginning inventory, work in process+Total manufacturing costs-Cost of goods manufactured

= $73000+1055000-1056000= $72000

Cost of goods available for sale= Cost of goods manufactured+Beginning inventory, finished goods

= $1056000+115000= $1171000

Ending inventory, finished goods= Cost of goods available for sale-Cost of goods sold

= $1171000-1105000= $66000

Sales= Cost of goods sold+Gross margin= $1105000+513000= $1618000

Selling and administrative expenses= Gross margin-Income before taxes=$513000-315000= $198000

Net income= Income before taxes-Income tax expense= $315000-83000= $232000

Case B

Ending inventory, raw materials= Beginning inventory, raw materials+Purchases of raw materials-Direct materials used

= $66000+258000-291000= $33000

Manufacturing overhead= Total manufacturing costs-Direct materials used-Direct labor

= $1050000-291000-315000= $444000

Cost of goods manufactured= Beginning inventory, work in process+Total manufacturing costs-Endinginventory, work in process

= $63000+1050000-108000= $1005000

Cost of goods available for sale= Cost of goods manufactured+Beginning inventory, finished goods

= $1005000+123000= $1128000

Ending inventory, finished goods= Cost of goods available for sale-Cost of goods sold

= $1128000-1002000= $126000

Sales= Cost of goods sold+Gross margin= $1002000+513000= $1515000

Income before taxes= Gross margin-Selling and administrative expenses= $513000-231000= $282000

Net income= Income before taxes-Income tax expense= $282000-144000= $138000

Case C

Direct materials used= Total manufacturing costs-Direct labor-Manufacturing overhead

= $185000-64000-83000= $38000

Purchases of raw materials= Direct materials used+Ending inventory, raw materials-Beginning inventory, raw materials

= $38000+18000-9000= $47000

Beginning inventory, work in process= Cost of goods manufactured+Ending inventory, work in process-Total manufacturing costs

= $190000+2800-185000= $7800

Beginning inventory, finished goods= Cost of goods available for sale-Cost of goods manufactured

= $203000-190000= $13000

Cost of goods sold= Cost of goods available for sale-Ending inventory, finished goods= $203000-14000= $189000

Gross margin= Sales-Cost of goods sold= $270000-189000= $81000

Selling and administrative expenses= Gross margin-Income before taxes= $81000-48000= $33000

Income tax expense= Income before taxes-Net income= $48000-29000= $19000