Question

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

Direct materials used		$9,780		________
Direct labor		5,110		8,920
Manufacturing overhead		8,880		4,140
Total manufacturing costs		_______		16,450
Beginning work in process inv		1,990		_______
Ending work in process inventory		________		3,590
Sales revenue		25,250		________
Sales discounts		2,790		1,500
Cost of goods manufactured		17,980		22,450
Beginning finished goods inventory		______		4,160
Goods available for sale		22,800		______
Cost of goods sold		_______		_______
Ending finished goods inventory		4,130		3,020
Gross profit		________		7,640
Operating expenses		3,260		______
Net income		_______		5,140

Next....

A)Prepare a condensed cost of goods manufactured schedule for Case 1.

B)Prepare an income statement for Case 1.

C)Prepare the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $3,330, Receivables (net) $15,830, Raw Materials $690, and Prepaid Expenses $490.

Answer 1

Cost of Goods Manufactured for Case 1: Particulars Work in process Inventory, Beginning Direct material used Direct labor Manufacturing overhead Amounts 1,990 9,780 5,110 8,880 25,760 (7,780) 17,980 Less: Work in process Inventory, Ending (25760-17980) Cost of goods manufactured Amount $ Amount $ 25,250 2,790 22,460 Income Statement for Case 1: Particulars Sales Revenue Less: Sales discounts Net sales revenue Less: Cost of goods sold Beginning finished goods inventory (22800-17890) Add: Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory Cost of goods sold Gross Profit Less: Operating expenses Net Income 4,820 17,980 22,800 4,130 18,670 3,790 3,260 530 Amount $ Amount $ 3,330 15,830 Current Account section of balance sheet :- Particulars Cash Receivables (net) Inventory :- Raw material Work in progress Finished goods Prepaid expenses Total current assets 690 7,780 4,130 12,600 490 32,250