Answer is complete but not entirely correct. $ 2,600 4,320 Direct materials inventory, January 1 Direct materials inventory, December 31 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Purchases of direct materials Cost of goods manufactured during the year Total manufacturing costs Cost of goods sold Gross margin Direct labor Direct materials used Manufacturing overhead Sales revenue 3,000 3,870 2,040 310 16,300 53,980 55,300 $ 55,710 47,480 26,820 14,580 13,900 103,190