Question

EU Kimmel, Accounting, Te Help System Announcements Problem 14-03A Incomplete manufacturing costs, expenses, and selling data for two different cases are as fo Indicate the missing amount for each letter. Case Direct materials used Direct labor Manufacturing overhead Total manufacturing costs $9,890 5,670 8,640 tudy 8,450 5,100 16,910 Beginning work in process inventory 1.370 Ending work in process inventory 3,750 (b) 25,110 2.770 17,830 Sales revenue Sales discounts Cost of goods manufactured Beginning finished goods inventory Goods available for sale 1,990 22,400 3,590 (c) 22.740 S Cost of goods sold Ending finished goods inventory Gross profit 4,200 3.370 7.340 fel Operating expenses 2.810 Net income 5.580

Answer 1

Answer: A. The missing amount of each letter is as follows:

For Case-1

A) Total Manufacturing Cost = $9,890+$5,670+$8640=$24,200.

B) Ending work in process inventory = Total manufacturing cost+Beginning work in process inventory-Cost of Goods Manufactured=$24,200+$1,370-$17,830=$7,740

C) Beginning finished goods inventory = Goods Available for sale-Cost of Goods Manufactured=$22,740-$17,830=$4,910

D) Cost of goods sold = Goods Available for sale-Ending Finished goods inventory=$22,740-$4,200=$18,540

E) Gross Profit = Sales revenue-Operating expenses=$25,110-$2,810=$22,300

F) Net Income = Gross Profit-Operating expenses=$22,300-$2,810=$19,490

For Case-2

G) Direct materials used = Total manufacturing costs-Direct labor-Manufacturing overhead=$16,910-$8,450-$5,100=$3,360

H) Beginning work in process inventory = Ending work in process inventory-Total manufacturing cost+Cost of Goods Manufactured=$3,750-$16,910+$22,400=$9,240

I) Sales Revenue = Sales discounts+Cost of goods sold+Gross Profit=$1,990+$22,620 (Refer K)+$7,340=$31,950

J) Goods available for sale = Cost of goods manufactured+Beginning finished goods inventory=$22,400+$3,590=$25,990

K) Cost of goods sold = Goods Available for sale-Ending Finished goods inventory=$25,990-$3,370=$22,620

L) Operating expenses = Gross profit-Net income=$7,340-$5,580=$1,760

B. The Cost of Goods Manufactured Schedule for Case 1, Income Statement for Case 1 and (Partial) Balance Sheet for Case 1 are as follows:

CASE-1
Cost of Goods Manufactured Schedule
1	Beginning work in process inventory		$1,370
2	Direct Materials	$9,890
3	Direct Labor	$5,670
4	Manufacturing Overhead	$8,640
5	Total Manufacturing Cost (2 to 4)		$24,200
6	Total Cost of Work in Process (1+5)		$25,570
7	Less:Ending work in process inventory		$7,740
8	Cost of Goods Manufactured (6-7)		$17,830
CASE-1
Income Statement
1	Sales Revenue	$25,110
2	Less:Sales Discounts	$2,770
3	Net Sales (1-2)		$22,340
4	Cost of goods sold
5	Beginning finished goods inventory	$4,910
6	Cost of goods manufactured	$17,830
7	Goods available for sale (5+6)	$22,740
8	Less:Ending finished goods inventory	$4,200
9	Cost of goods sold(7-8)		$18,540
10	Gross Profit		$22,300
11	Operating expenses		$2,810
12	Net Income (10-11)		$19,490
CASE-1
(Partial Balance Sheet)
1	Current Assets
2	Cash		$4,070
3	Receivables		$15,910
4	Inventories
5	Raw Materials	$620
6	Ending work in process inventory	$7,740
7	Ending finished goods inventory	$4,200
8	Inventories (5 to 7)		$12,560
9	Prepaid Expenses		$430
10	Total Current Assets (2+3+8+9)		$32,970