Assume the same data from Problem 1 except that the work in process inventory increased by $2,000 and the finished goods inventory decreased by $3,000.

a. What was cost of goods manufactured?

b. What was cost of goods sold?

c. What was gross margin?

d. What was operating income?

e. What other information would be beneficial to determine whether you are managing your operations well?

Data from problem 1

Best Furniture had the following data in 2022:

There were no changes in the work in process inventory or the finished goods inventory.

Depreciation on equipment (1/4 is for office equipment) Rent, taxes, insurance, utilities (1/3 is administrative) Salaries of factory personnel other than direct labor (other than employees directly working on production) Salaries of salespeople and administrators Freight-out (cost to deliver products to customers: selling cost) Direct labor Raw materials purchased and used (1/5 is for indirect materials) Sales $100,000 $240,000 $60,000 $90,000 $25,000 $175,000 $300,000 $1,000,000