Question

STUDENT NAME: Student ID: QUESTION TWO he following shows the Schedule of Direct Materials leed Cost of Goods Manufactured, Cost of Goods Sold and Income Statement. Fill in the missing amounts for blanks 11 to 18 below. Beginning inventory, raw material. ...11. Ending inventory, raw material..... $ 90,000 Purchase of raw material .. 100,000 Direct material used.. 70,000 Direct labour ....... ..12. Manufacturing overhead .. 250,000 Total manufacturing costs ............ 520,000 Beginning inventory, work in process .......... 35,000 Ending inventory, work in process ......... ... 13. ? Cost of goods manufactured ...................... 525,000 Beginning inventory, finished goods ............... 50,000 Cost of goods available for sale ............ Ending inventory, finished goods ................15. ? 545,000 Cost of goods sold ..... ....... Sales ........ .............................16. ? Gross margin..... 255,000 Selling and administrative expenses ............ 17. ? Income before taxes. 150,000 Income tax expense....... 40,000 Net income after tax....... ... 18. ?

Answer 1

Ans.	Particulars	Amount
	Beginning inventory, raw material	$60,000
	Ending inventory, raw material	$90,000
	Purchase of raw material	$100,000
	Direct material used	$70,000
	Direct labor	$200,000
	Manufacturing overhead	$250,000
	Total manufacturing costs	$520,000
	Beginning inventory, Work in process	$35,000
	Ending inventory, Work in process	$30,000
	Cost of goods manufactured	$525,000
	Beginning inventory, finished goods	$50,000
	Cost of goods available for sale	$575,000
	Ending inventory, finished goods	$30,000
	Cost of goods sold	$545,000
	Sales	$800,000
	Gross margin	$255,000
	Selling and administrative expenses	$105,000
	Income before taxes	$150,000
	Income tax expense	$40,000
	Net income after tax	$110,000
	*Working Notes:
Ans. 11	Direct material used	$70,000
	Add: Ending inventory, raw material	$90,000
	Less: Purchase of raw material	-$100,000
	Beginning inventory, raw material	$60,000
Ans. 12	Total manufacturing costs	$520,000
	Less: Direct material used	-$70,000
	Less: Manufacturing overhead	-$250,000
	Direct labor	$200,000
Ans. 13	Total manufacturing costs	$520,000
	Add: Beginning Work in process inventory	$35,000
	Less: Cost of goods manufactured	-$525,000
	Ending Work in process inventory	$30,000
Ans. 14	Beginning finished goods inventory	$50,000
	Cost of goods manufactured	$525,000
	Cost of goods available for sale	$575,000
Ans. 15	Cost of goods available for sale	$575,000
	Less: Cost of goods sold	-$545,000
	Ending finished goods inventory	$30,000
Ans. 16	Cost of goods sold	$545,000
	Add: Gross margin	$255,000
	Sales	$800,000
Ans. 17	Gross margin	$255,000
	Less: Income before taxes	-$150,000
	Selling and administrative expenses	$105,000
Ans. 18	Income before taxes	$150,000
	Income tax expense	-$40,000
	Net income after tax	$110,000