Question

Indicate the missing amount for each letter.

Answer 1

Answer:

See below

Explanation:

Case 1.

Total manufacturing costs

= Direct material + Direct labor + Manufacturing overhead

= $9,780 + $5,950 + $8,870 = $24,000

Ending work in process inventory

= Opening work in process + total manufacturing cost - cost of goods manufacturing

= $1,510 + $24,600 - $17,970 = $8,140

Beginning finished goods inventory

= Cost of goods sold - cost of goods manufactured + closing finished goods inventory

= $19,140 - $17,970 + $3,720 = $4,890

Cost of goods sold

= Opening finished good inventory + cost of goods manufactured - closing finished goods inventory

= $4,890 + $17,970 - $3,720 = $19,140

Gross profit

= Sales - cost of goods sold

= $25,780 - $2,810 - $19,140 = $3,830

Net income

= Gross profit - Operating expense

= $3,830 - $3,510 = $320

*Condensed cost of goods manufactured schedule

Opening work in process $1,510

Direct material

9,780

Direct labor

$5,950

Manufacturing overhead

$8,870

Total manufacturing cost $24,600

Cost of goods manufactured available

$26,110

Less:

Closing work in process

($8,140)

Cost of goods manufactured

$17,970

* Income statement

Sales

$25,780

Less:

Discount

($2,810)

Net sales $22,970

Less:

Cost of goods sold

Beginning finished goods inventory

$4,890

Add:

Cost of goods manufactured

$17,970

Cost of goods available for sale

$22,860

Less:

Closing finished goods inventory

($3,720)

Cost of goods sold $19,140

Gross profit

$3,830

Less:

Operating expenses

($3,510)

Net income

$320