Case

1 2

Direct materials used $ 9,600 $ (g)

Direct labor 5,000 8,000

Manufacturing overhead 8,000 4,000

Total manufacturing costs (a) 16,000

Beginning work in process inventory 1,000 (h)

Ending work in process inventory (b) 3,000

Sales revenue 24,500 (i)

Sales discounts 2,500 1,400

Cost of goods manufactured 17,000 22,000

Beginning ? nished goods inventory (c) 3,300

Goods available for sale 20,000 (j)

Cost of goods sold (d) (k)

Ending ? nished goods inventory 3,400 2,500

Gross pro? t (e) 7,000

Operating expenses 2,500 (l)

Net income (f) 5,000

Instructions

(a) Indicate the missing amount for each letter.

(b) Prepare a condensed cost of goods manufactured schedule for Case 1.

(c) Prepare an income statement and the current assets section of the balance sheet for

Case 1. Assume that in Case 1 the other items in the current assets section are as

follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600, and Prepaid

Expenses $400.