Account Activity and Relationships

Each case is independent. Solve for missing data in alphabetical order. (Hint: Refer to Exhibit 5.6, p. 168 and the WIP table, p. 176.)

		Case A	Case B	Case C	Case D
Sales		$170,000	(b) Answer	220,000	(b) Answer
Direct materials		30,000	42,000	(f) Answer	42,000
Direct labor		10,000	(c) Answer	40,000	(c) Answer
Total direct costs		(a) Answer	64,000	(e) Answer	60,000
Conversion cost		(b) Answer	52,000	(g) Answer	(g) Answer
Manufacturing overhead		16,000	(d) Answer	20,000	(f) Answer
Current manufacturing costs		(c) Answer	(e) Answer	190,000	158,000
Work in process, beginning		14,000	20,000	(d) Answer	42,000
Work in process, ending		10,000	(f) Answer	42,000	(e) Answer
Cost of goods manufactured		(d) Answer	64,000	(c) Answer	164,000
Finished goods inventory, beginning		18,000	16,000	14,000	24,000
Finished goods inventory, ending		12,000	(g) Answer	16,000	(d) Answer
Cost of goods sold		(e) Answer	70,000	(b) Answer	160,000
Gross profit		(f) Answer	(a) Answer	36,000	30,000
Selling and administrative expenses		40,000	30,000	(a) Answer	(a) Answer
Net income		(g) Answer	44,000	24,000	12,000