Solution :
Case 1:
Cost of goods sold (A) = Revenue - Gross Margin = $52,000 - $18,000 = $34,000
Cost of goods manufactured = DM used + Direct labor + Manufacturing overhead + Beginning WIP - Ending WIP
= $13,000 +$4,500 + $9,500 + $3,000 -0 = $30,000
Ending finished goods inventory (B) = Beginning finished goods inventory + Cost of goods manufactured - Cost of goods sold
= $5,000 + $30,000 - $34,000 = $1,000
Case 2:
Gross margin (C) = Revenue - COGS = $52,300 - $31,800 = $20,500
Cost of goods manufactured = COGS + Ending finished goods inventory - Beginning finished goods inventory
= $318,500 + $7,000 - $7,000 = $31,800
Direct material + Direct labor + Manufacturing overhead + Beginning WIP - Ending WIP = $31,800
$19,000 + $8,500 + Manufacturing overhead + $1,500 - $4,700 = $31,800
Manufacturing overhead (D) = $7,500
2-48 Finding unknown amounts. An auditor for the Internal Revenue Service is trying to reconstruct some...
2-48 Finding unknown amounts. An auditor for the Internal Revenue Service is trying to reconstruct some partially destroyed records of two taxpayers. For each of the cases in the accompanying list, find the unknowns designated by the letters A and B for Case 1 and C and D for Case 2. Accounts receivable, 12/31 Cost of goods sold Accounts payable, 1/1 Accounts payable, 12/31 Finished-goods inventory, 12/31 Gross margin Work-in-process inventory, 1/1 Work-in-process inventory, 12/31 Finished-goods inventory, 1/1 Direct materials...
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An insurance investigator is trying to reconstruct the accounting records of the Fishman Company. Some data were destroyed in a fire, but the following information has been collected: Sales $44,000 Direct materials purchased $8,000 Manufacturing overhead $13,000 Sales commissions $2,000 Direct labor $4,000 Direct materials used $7,600 Gross margin $12,000 Accounts payable, beginning balance $1,700 Accounts payable, ending balance $1,500 Work in process, beginning balance $1,300 Work in process, ending balance $800 In addition, the investigator learned that the beginning...
An insurance investigator is trying to reconstruct the accounting records of the Fishman Company. Some data were destroyed in a fire, but the following information has been collected: Sales $44,000 Direct materials purchased $8,000 Manufacturing overhead $13,000 Sales commissions $2,000 Direct labor $4,000 Direct materials used $7,600 Gross margin $12,000 Accounts payable, beginning balance $1,700 Accounts payable, ending balance $1,500 Work in process, beginning balance $1,300 Work in process, ending balance $800 In addition, the investigator learned that the beginning...
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