Question

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. (a) Indicate the missing amount for each letter. Case 1 2 Direct materials used $9,760 $ (g) Direct labor 5,680 8,810 Manufacturing overhead 8,480 4,620 Total manufacturing costs (a) 16,570 Beginning work in process inventory 1,460 (h) Ending work in process inventory (b) 3,590 Sales revenue 25,330 (i) Sales discounts 2,790 2,010 Cost of goods manufactured 17,530 22,960 Beginning finished goods inventory (c) 3,660 Goods available for sale 22,290 (j) Cost of goods sold (d) (k) Ending finished goods inventory 3,650 3,250 Gross profit (e) 7,430 Operating expenses 3,290 (l) Net income (f) 5,300 Attempts: 0 of 2 ub) Prepare a condensed cost of goods manaufactures schdule ffor Case1c1) Prepare an Income statement for Case 1c2) Prepare the current assets section of the balance sheet for Case1. 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.

Answer 1

Case 1 2

Total manufacturing costs 23920 16,570

Cost of goods manufactured 17,530 22,960

Cost of goods sold 18640 23370

Current Assets : Case 1 $ 20,000

Step-by-step explanation:

Cost of Goods Manufactured Schedule

Case 1 2

Direct materials used $9,760 $ (g) 3140

Direct labor 5,680 8,810

Manufacturing overhead 8,480 4,620

Total manufacturing costs (a) 16,570

23920

We add the Direct materials used , Direct labor and Manufacturing overhead to get the Total manufacturing costs.

Case 1 2

Total manufacturing costs 23920 16,570

Beginning work in process inventory 1,460 (h)

( 19370- 16,570) 2800

Cost of goods available for manufacture 25380 19370

Ending work in process inventory (b) 3,590

17,530-25380 7850

Cost of goods manufactured 17,530 22,960

We add the Beginning work in process inventory to the Total manufacturing costs and subtract Ending work in process inventory to get Cost of Goods Manufactured Schedule. And do reverse operations from starting at the end to get the required amounts.

Case 1 2

Cost of goods manufactured 17,530 22,960

Beginning finished goods inventory (c) 3,660

(22,290- 17,530 ) 4760

Goods available for sale 22,290 (j)

(22,960 + 3,660) 26620

Less Ending finished goods inventory 3,650 3,250

Cost of goods sold (d) (k)

18640 23370

We add the Beginning finished goods inventory to the Cost of goods manufactured and subtract Ending finished goods inventory to get Cost of Goods Sold. And do reverse operations from starting at the end to get the required amounts.

Income statement

Case 1 2)

Sales revenue 25,330 (i)

7,430 + 23370 + 2,010 32810

Less Sales discounts 2,790 2,010

Less Cost of goods sold 18640 23370

Gross profit (e) 7,430

25,330 - 2,790- 18640 3900

Operating expenses 3,290 (l)

7,430-5,300 2130

Net income (f) 5,300

3900- 3290 610

Sales less Sales discounts less Cost Of Goods Sold gives Gross Profit.

When operating expenses are deducted from the Gross Profit we get Net Income.

Current Assets : Case 1 $ 20,000

Cash $4,000,

+Receivables (net) $15,000,

+Raw Materials $600

+Prepaid Expenses $400.

Total Current Assets $ 20,000