=+Company Company Materials inventory, December 1 $ 78,000 $ 102,000 Materials inventory, December 31

(a) 115,000 Materials purchased 198,000 230,000 Cost of direct materials used in production 209,000 (a)

Direct labor 294,000 (b)

Factory overhead 91,000 114,000 Total manufacturing costs incurred during December

(b) 660,000 Total manufacturing costs 744,000 906,000 Work in process inventory, December 1 150,000 246,000 Work in process inventory, December 31 126,000 (c)

Cost of goods manufactured

(c) 654,000 Finished goods inventory, December 1 132,000 114,000 Finished goods inventory, December 31 138,000 (d)

Sales 1,150,000 1,020,000 Cost of goods sold

(d) 660,000 Gross profit

(e) (e)

Operating expenses 150,000 (f)

Net income

(f) 226,000 Instructions 1. Determine the amounts of the missing items, identifying them by letter.