Question

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

(a) Indicate the missing amount.

		Case
		1		2
Direct materials used		$9,700		$
Direct labor		5,100		8,100
Manufacturing overhead		8,400		4,100
Total manufacturing costs				16,100
Beginning work in process inventory		1,100
Ending work in process inventory				3,100
Sales revenue		25,000
Sales discounts		2,600		1,500
Cost of goods manufactured		17,100		22,100
Beginning finished goods inventory				3,400
Goods available for sale		22,100
Cost of goods sold
Ending finished goods inventory		3,500		2,600
Gross profit				7,100
Operating expenses		2,800
Net income				5,100

Answer 1

We would first calculate all the missing data for case 1.
Total manufacturing costs	Direct material used+Direct labor+Manufacturing overhead
Total manufacturing costs	9700+5100+8400
Total manufacturing costs	$23,200
Ending work in process inventory	Beginning work in process inventory + Total manufacturing costs - Cost of goods manufactured
Ending work in process inventory	1100+23200-17100
Ending work in process inventory	$7,200
Beginning finished goods inventory	Goods available for sale - Cost of goods manufactured
Beginning finished goods inventory	22100-17100
Beginning finished goods inventory	$5,000
Cost of goods sold	Goods available for sale - Ending finished goods inventory
Cost of goods sold	22100-3500
Cost of goods sold	$18,600
Gross profit	Net sales - Cost of goods sold
Gross profit	(25000-2600)-18600
Gross profit	$3,800
Net income	Gross profit - Operating expenses
Net income	3800-2800
Net income	$1,000
2.
We would first calculate all the missing data for case 2.
Total manufacturing costs	Direct material used+Direct labor+Manufacturing overhead
16100	Direct materials used+5100+8400
Direct material used	16100-5100-8400
Direct material used	$2,600
Ending work in process inventory	Beginning work in process inventory + Total manufacturing costs - Cost of goods manufactured
3100	Beginning work in process inventory+16100-22,100
Beginning work in process inventory	3100+22100-16100
Beginning work in process inventory	$9,100
Goods available for sale	Cost of goods manufactured+Beginning finished goods inventory
Goods available for sale	22100+3400
Goods available for sale	$25,500
Cost of goods sold	Goods available for sale - Ending finished goods inventory
Cost of goods sold	25500-2600
Cost of goods sold	$22,900
Gross profit	Net sales - Cost of goods sold
7100	(Sales revenue-1500)-22900
Sales revenue	7100+1500+22900
Sales revenue	$31,500
Net income	Gross profit - Operating expenses
5100	7100 - Operating expenses
Operating expenses	7100+5100
Operating expenses	$12,200