Working with cost relationships Following are partial data from two independent income statements. Blanks represent missing data.

REQUIRED Fill in the missing data for each situation.

Situation A B Sales $50,000 $40,000 Beginning finished goods Beginning work in process Direct materials.. - 7,000 2,500 5,500 3,500 12,000 9,000 Direct labor ... 11,000 Manufacturing overhead 9,000 10,000 Ending work in process... 9,000 5,000 Cost of goods manufactured 29,000 Ending finished goods... Cost of goods sold. Gross margin.... Operating expenses Net income 9,000 19,500 12,000 8,500