Case B $ 20,000 Case A $ 10,000 90,000 100,000 70,000 Case C $ 15,000 30,000 85,000 95,000 100,000 Beginning inventory, raw material Ending inventory, raw material Purchases of raw material Direct material Direct labor Manufacturing overhead Total manufacturing costs Beginning inventory, work in process Ending inventory, work in process Cost of goods manufactured Beginning inventory, finished goods Cost of goods available for sale Ending inventory, finished goods Cost of goods sold 125,000 160,000 340,000 250,000 520,000 35,000 345,000 20,000 35,000 5,000 350,000 525,000 50,000 40,000 370,000 25,000 545,000 330,000 480,000 255,000 170,000 75,000 Sales Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income 90,000 150,000 40,000 45,000 55,000