Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.
|
Case
|
|
1
|
2
|
|
Direct materials used
|
$9,600
|
$ (g)
|
|
Direct labor
|
5,000
|
8,000
|
|
Manufacturing overhead
|
8,000
|
4,000
|
|
Total manufacturing costs
|
(a)
|
16,000
|
|
Beginning work in process inventory
|
1,000
|
(h)
|
|
Ending work in process inventory
|
(b)
|
3,000
|
|
Sales
|
24,500
|
(i)
|
|
Sales discounts
|
2,500
|
1,400
|
|
Cost of goods manufactured
|
17,000
|
22,000
|
|
Beginning finished goods inventory
|
(c)
|
3,300
|
|
Goods available for sale
|
20,000
|
(j)
|
|
Cost of goods sold
|
(d)
|
(k)
|
|
Ending finished goods inventory
|
3,400
|
2,500
|
|
Gross profit
|
(e)
|
7,000
|
|
Operating expenses
|
2,500
|
(l)
|
|
Net income
|
(f )
|
5,000
|
Instructions
(a) Indicate the missing amount for each letter.
(b) Prepare a condensed cost of goods manufactured schedule for Case 1.
(c) Prepare an income statement and the current assets section of the balance sheet for Case 1. 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.