Question

Example #15 Beginning inventory, raw materials Ending inventory, raw materials $15,000 $10,000 Purchases of raw materials Unknown #1 Raw materials used Unknown #2 Direct labor $175.000 Manufacturing Overhead $112,000 Total manufacturing costs $377,000 Beginning inventory, work in process Unknown #3 Ending inventory, work in process $16.000 Cost of Goods Manufactured $389,000 Unknown #4 Beginning inventory, finished goods Cost of goods available for sale $462,000 $61,000 Ending Inventory, finished goods Unknown #5 Cost of Goods Sold $741,000 Sales Unknown #6 Gross Margin Unknown #7 Selling and administrative expenses $143,000 Income before taxes Unkown #8 Income tax expense $98,000 Net Income Compute the missing amounts.

Answer 1

Answer:

Total manufacturing costs	$377,000
Manufacturing overhead	($112,000)
Direct labor	($175,000)
Raw materials used	$90,000	#2
Raw materials used	$90,000
Beginning inventory, raw materials	($15,000)
Ending inventory, raw materials	$10,000
Purchase of raw materials	$85,000	#1
Cost of goods manufactured	$389,000
Total manufacturing costs	($377,000)
Ending inventory, work in process	$16,000
Beginning inventory, work in process	$28,000	#3
Cost of goods solds available for sale	$462,000
Cost of goods manufactured	($389,000)
Beginning inventory, finished goods	$73,000	#4
Cost of goods solds available for sale	$462,000
Ending inventory, finished goods	($61,000)
Cost of goods sold	$401,000	#5
Sales	$741,000
Cost of goods sold	($401,000)
Gross margin	$340,000	#6
Gross margin	$340,000
Income before taxes	($143,000)
Selling and administrative expenses	$197,000	#7
Income before taxes	$143,000
Net income	($98,000)
Income Tax expense	$45,000	#8