Determine the missing amounts in each of the following indep

Determine the missing amounts in each of the following independent cases. Case A Case B Case C $240,000 7,500 15,000 Sales Beginning inventory, raw material Ending inventory, raw material Purchases of raw material Direct material used 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 Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income 60,000 180,000 200,000 140,000 255,000 285,000 300,000 62,500 80,000 170,000 500,000 1,040,000 1,035,000 60,000 105,000 70,000 2,500 1,050,000 100,000 175,000 120,000 185,000 12,500 1,090,000 510,000 990,000 510,000 225,000 300,000 80,000 45,000 135,000 27,500

Solution

Case A

Case B

Case C

Sales

$1,600,000

$240,000

Beginning inventory, raw material

$120,000

$60,000

$7,500

Ending inventory, raw material

$180,000

$30,000

$15,000

Purchases of raw material

$200,000

$255,000

$ 35,000

Direct material used

$140,000

$285,000

$27,500

Direct Labor

$400,000

$300,000

$62,500

Manufacturing overhead

$500,000

$450,000

$80,000

Total manufacturing costs

$1,040,000

$1,035,000

$170,000

Beginning inventory, work in process

$70,000

$60,000

$7,500

Ending inventory, work in process

$60,000

$105,000

$2,500

Cost of goods manufactured     

$1,050,000

$990,000

$175,000

Beginning inventory, finished goods

$100,000

$120,000

$10,000

Cost of goods available for sale

$1,150,000

$1,100,000

$185,000

Ending inventory, finished goods

$60,000

$120,000

$12,500

Cost of goods sold

$1,090,000

$990,000

$172,500

Gross margin

$510,000

$510,000

$67,500

Selling and administrative expenses

$210,000

$225,000

$225,000

Income before taxes

300,000

$285,000

$45,000

Income tax expense

$80,000

$135,000

$17,500

Net income

$220,000

$150,000

$ 27,500

	Case A	Case B	Case C
Sales	$1,600,000	$1,500,000	$240,000
Beginning inventory, raw material	$120,000	$60,000	$7,500
Ending inventory, raw material	$180,000	$30,000	$15,000
Purchases of raw material	$200,000	$255,000	$ 35,000
Direct material used	$140,000	$285,000	$27,500
Direct Labor	$400,000	$300,000	$62,500
Manufacturing overhead	$500,000	$450,000	$80,000
Total manufacturing costs	$1,040,000	$1,035,000	$170,000
Beginning inventory, work in process	$70,000	$60,000	$7,500
Ending inventory, work in process	$60,000	$105,000	$2,500
Cost of goods manufactured	$1,050,000	$990,000	$175,000
Beginning inventory, finished goods	$100,000	$120,000	$10,000
Cost of goods available for sale	$1,150,000	$1,100,000	$185,000
Ending inventory, finished goods	$60,000	$120,000	$12,500
Cost of goods sold	$1,090,000	$990,000	$172,500
Gross margin	$510,000	$510,000	$67,500
Selling and administrative expenses	$210,000	$225,000	$225,000
Income before taxes	300,000	$285,000	$45,000
Income tax expense	$80,000	$135,000	$17,500
Net income	$220,000	$150,000	$ 27,500