Question 1. (6 Marks)

Case 2 (3 Marks). Book problem. Incomplete manufacturing costs, expenses and selling data for two different cases are shown below:

Required:

1. Indicate the missing amount for each letter

2. Prepare a schedule of cost of goods manufactured

3. Prepare a schedule of cost of goods sold

4. Prepare an income statement (Optional)

Case 1

Case 2

Raw materials used

9,600

g)

Direct labor cost

5,000

8,000

Total Factory 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

24,000

Beginning finished goods inventory

c)

3,300

Goods available for sale

22,000

j)

Cost of goods sold

d)

k)

Ending finished goods inventory

3,400

2,500

Gross profit

e)

7,000

Operating expenses

2,500

l)

Net income

f)

5,000

its every thing