Question

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.Incomplete manufacturing costs, expenses, and sellIncomplete manufacturing costs, expenses, and sell Collapse question part(a) Indicate the missing amount for each letter.Case 1 2Direct materials used $9,600 $Direct labor 5,000 8,000 Manufacturing overhead 8,000 4,000 Total manufacturing costs 16,000 Beginning work in process 1,000 inventoryEnding work in process inventory 3,000 Sales revenue 24,500 Sales discounts 2,500 1,400 Cost of goods manufactured 17,000 22,000 Beginning finished goods inventory 3,300 Goods available for sale 20,000 Cost of goods sold Ending finished goods inventory 3,400 2,500 Gross profit 7,000 Operating expenses 2,500 Net income 5,000b) 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

a. Incomplete Manufacturing Costs:

Case 1 Case 2

Direct materials used $9,600 $ 4,000

Direct labor 5,000 8,000

Manufacturing overhead 8,000 4,000

Total manufacturing costs 22,600 16,000

Beginning work in process inventory 1,000 9,000

Ending work in process inventory 6,600 3,000

Sales revenue 24,500 30,900

Sales discounts 2,500 1,400

Cost of goods manufactured 17,000 22,000

Beginning finished goods inventory 3,000 3,000

Goods available for sale 20,000 25,000

Cost of goods sold 16,600 22,500

Ending finished goods in inventory 3,400 2,500

Gross profit 5,400 7,000

Operating expenses 2,500 2,000

Net Income 2,900 5,000

b. Condensed cost of goods manufactured schedule for Case 1:

Direct materials used $9,600

Direct labor 5,000

Manufacturing overhead 8,000

Total manufacturing costs 22,600

Beginning WIP inventory 1,000

Ending WIP inventory 6,600

Cost of goods manufactured $17,000

c1. Income Statement for Case 1:

Sales Revenue, net $22,000

Cost of goods sold 16,600

Gross profit $5,400

Operating expenses 2,500

Net income $2,900

c2. Current Assets Section of the Balance Sheet for Case 1:

Cash $4,000

Receivables (net) 15,000

Inventory: Raw materials 600

WIP 6,600

Finished Goods 3,400

Prepaid Expenses 400

Total current assets $30,000

Step-by-step explanation:

Data for incomplete manufacturing costs, including the income statement can be prepared by working back and forth with the provided figures. The missing figures are provided in bold font as above.