Question

Indicate the missing amount for each letter.

Case
1 2
Direct materials used $9,780
Direct labor 5,950 8,300
Manufacturing overhead 8,870 4,880
Total manufacturing costs 16,210
Beginning work in process inventory1,510
Ending work in process inventory 3,650
Sales revenue 25,780
Sales discounts 2,810 2,070
Cost of goods manufactured 17,970 22,620
Beginning finished goods inventory 4,030
Goods available for sale 22,860
Cost of goods sold 19140
Ending finished goods inventory 3,720 3,110
Gross profit 8,100
Operating expenses 3,510
Net income 5,330
1. Prepare a condensed cost of goods manufactured schedule for case 1.
2. Prepare an income statement for case 1.

Answer 1

See below

Step-by-step 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