=+2-49 KK Finding unknown amounts OBJECTIVE 5 An auditor for the Australian Taxation Office is trying to reconstruct some partially destroyed records of two taxpayers. For each of the cases in the accompanying list, find the unknowns designated by the letters A–D.

Case 1 Case 2

(in thousands)

Accounts receivable, 30 June $6 000 $2 100 Cost of goods sold A 20 000 Accounts payable, 1 January 3 000 1 700 Accounts payable, 31 December 1 800 1 500 Finished goods inventory, 31 December B 5 300 Gross margin 11 300 C Work-in-process inventory, 1 January 0 800 Work-in-process inventory, 31 December 0 3 000 Finished goods inventory, 1 January 4 000 4 000 Direct materials used 8 000 12 000 Direct manufacturing labour 3 000 5 000 Manufacturing overhead costs 7 000 D Purchases of direct materials 9 000 7 000 Revenues 32 000 31 800 Accounts receivable, 1 January 2 000 1 400