An auditor for the Internal Revenue Service is trying to reconstruct some partially destroyed records of two taxpayers. (Click the icon to view the records.) Requirement For each of the cases, find the unknowns designated by the letters A and B for Case 1 and C and D for Case 2. Case 1: Find the unknowns designated by the letters A and B. First, solve for A. Cost of goods sold. Gross margin Next complete the following schedule of cost of goods manufactured. (Complete all input fields. Enter a "0" for any zero balances.) Total manufacturing costs incurred Data table - X Total manufacturing costs to account for Cost of goods manufactured Now use the cost of goods sold formula to solve for B. Finished goods inventory, 12/31. Accounts receivable, December 31 Cost of goods sold Case 1 Case 2 (in thousands) 13,000 $ 3,370 A 26,000 Accounts payable, January 1 4,400 3,160 Accounts payable, December 31 2,500 2,160 Finished-goods inventory, December 31 B 5,500 Gross margin 18,500 Cost of goods available for sale Work-in-process inventory, January 1 Work-in-process inventory, December 31 1,000 600 0 4,500 Cost of goods sold Finished-goods inventory, January 1 2,000 4,000 Case 2: Find the unknowns designated by the letters C and D. Direct materials used 15,000 14,000 First, solve for C. Gross margin. Direct manufacturing labor 4,300 7,700 Manufacturing overhead costs 6,800 D Purchases of direct materials 12,500 11,500 Revenues 44,000 48,500 Gross margin Next, complete the cost of goods sold formula. Accounts receivable, January 1 1,200 1,700 Cost of goods available for sale Cost of goods sold Finally, complete the schedule of cost of goods manufactured to solve for D. Manufacturing overhead costs. Total manufacturing costs incurred Total manufacturing costs to account for Cost of goods manufactured Print Done