1. After a computer failure, you are trying to reconstruct some financial results for the year just ended. While you know that backups are available, it will take too long to get the information you want. You have been able to collect the following information.

Direct materials inventory, January 1 (Beginning)	$	2,900
Direct materials inventory, December 31 (Ending)		2,350
Work-in-process inventory, January 1 (Beginning)		5,010
Work-in-process inventory, December 31 (Ending)		2,460
Finished goods inventory, December 31 (Ending)		3,490
Manufacturing overhead		5,860
Cost of goods manufactured during this year		21,830
Total manufacturing costs		19,280
Cost of goods sold		21,840
Direct labor		3,080
Average sales price per unit		2
Gross margin percentage		35.00	%

Required:

a. Find the finished goods inventory, January 1.

b. Find the direct materials used for the year.

c. Find the Sales revenue. (Round your final answer to the nearest whole dollar.)

2. On January 1, 2021, ABC Corp. increased its direct labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect the company's budgeted break-even point and budgeted margin of safety?

	Budgeted Break-even Point	Budgeted Margin of Safety
A.	Increase	Increase
B.	Increase	Decrease
C.	Decrease	Decrease
D.	Decrease	Increase