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Case A B 6300

Price: $2.50

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

  Case A Case B
Direct materials used   6,300  $ (g)  
Direct labor   3,000  4,000
Manufacturing overhead   6,000  5,000
Total manufacturing costs   (a)    16,000
Beginning work in process inventory   1,000  (h)  
Ending work in process inventory   (b)    2,000
Sales revenue   22,500  (i)  
Sales discounts   1,500  1,200
Cost of goods manufactured   15,800  20,000
Beginning finished goods inventory   (c)    5,000
Goods available for sale   18,300  (j)  
Cost of goods sold   (d)    (k)  
Ending finished goods inventory   1,200  2,500
Gross profit   (e)    6,000
Operating expenses   2,700  (l)  
Net income   (f)    2,200

(a) Indicate the missing amount for each letter.
(b) Prepare a condensed cost of goods manufactured schedule for Case A.
(c) Prepare an income statement and the current assets section of the balance sheet for
Case A. Assume that in Case A the other items in the current assets section are as follows:
Cash $3,000, Receivables (net) $10,000, Raw Materials $700, and Prepaid Expenses $200.

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