Ron Williams recently took over as the controller of Johnson Brothers Manufacturing. Last month, the previous controller left the company with little notice and left the accounting records in disarray. Ron needs the ending inventory balances to report first quarter numbers.

For the previous month (March 2011) Ron was able to piece together the following information:

Calculate the cost of:1. Finished goods inventory, 3/31/20112. Work-in-process inventory, 3/31/20113. Direct materials inventory,3/31/2011

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Direct materials purchased Work-in-process inventory, 3/1/2011 Direct materials inventory, 3/1/2011 Finished goods inventory, 3/1/2011 Conversion Costs Total manufacturing costs added during the period Cost of goods manufactured Gross margin as a percentage of revenues Revenues $ 240,000 $ 70,000 $ 25,000 $ 320,000 $ 660,000 $ 840,000 4 times direct materials used 20% $1,037,500