Direct materials used 9000 Direct labor cost 4000 Overhead

Direct materials used 9000 Direct labor cost 4000 Overhead a Total manufacturing costs 25000 Work in process inventory Jan 1 1000 Work in process inventory Dec 31 3500 Sales revenue 40000 Finished goods inventory Jan 1 b Cost of goods manufactured c Cost of goods available for sale d Finished goods inventory Dec 31 4000 Cost of goods sold 26500 Gross margin e Operating expenses f Net operating income 5500