Question

Supply the missing data in the four cases that follow. Each case is independent of the others Case 1 2 3 4 Schedule of Cost of Goods Manufactured Direct materials $ $ $ 9,750 $ 8,500 18,500 8,200 7,400 1,870 11,600 29,870 3,170 22,160 11,750 49,500 Direct labour Manufacturing overhead Total manufacturing costs Beginning work in process inventory Ending work in process inventory Cost of goods manufactured Income Statement 29,520 3,460 2,640 (8,230) (4,550) 19,620 (2,260) 33,050 $ $ 27,500 $ Sales $ 33,500 $ 68,500 $ $ 58,200 11,300 27,500 63,700 9,320 33,050 Beginning finished goods inventory Cost of goods manufactured Goods available for sale Ending finished goods inventory Cost of goods sold Gross margin Selling and administrative expenses Operating income 7,050 19,620 26,670 11,250 15,420 7,150 10,900 44,810 31,500 18,080 11,100 18,050 6,980: 9,990 8,700

Answer 1

	Case
	1	2	3	4
Schedule of cost of goods manufactured
Direct materials	7400	18500	9750	8500
Direct Labour	1870	8200	8020	3170
Manufacturing overhead	11600	22800	11750	22160
Total manufacturing costs	20870	49500	29520	33830
Beginning WIP inventory	3300	2640	3460	1480
Ending WIP inventory	-4550	-8230	-5480	-2260
Cost of goods manufactured	19620	43910	27500	33050
Income statement
Sales	33500	68500	58200	63700
Beginning finished goods inventory	7050	11800	11300	9320
Cost of goods manufactured	19620	43910	27500	33050
Goods available for sale	26670	55710	38800	42370
Ending Finished goods inventory	11250	10900	7300	7150
Cost of goods sold	15420	44810	31500	35220
Gross margin	18080	23690	26700	28480
Selling and administration expenses	11100	13700	18000	18050
Operating Income	6980	9990	8700	10430

Explanation:

The missing data can be found by rearranging the equations:

1. Cost of goods manufactered= Total manufacturing costs + beginning WIP - ending WIP

2. Total manufacturing costs = Direct materials + Direct labour + manufacturing overhead

3. Sales - COGS = gross margin

4. COGS = Beginning finished goods inventory + cost of goods manufactured - ending finished goods inventory

5. cost of goods available for sale = Cost of goods manufactured + beginning finished goods inventory

6. operating income = gross margin - selling and administrative expenses