Case B Case C $ 100,000 $ Case A 92,000 $ 200,000 300,000 240,000 Beginning inventory, raw material Ending inventory, raw material Purchases of raw material Direct material 8,000 35,000 275,000 325,000 400,000 600,000 1,140,000 90,000 72,500 100,000 227,000 1,135,000 80,000 125,000 Direct labor Manufacturing overhead Total manufacturing costs Beginning inventory, work in process Ending inventory, work in process Cost of goods manufactured Beginning inventory, finished goods Cost of goods available for sale Ending inventory, finished goods Cost of goods sold Sales 4,500 230,000 1,090,000 200,000 140,000 247,000 22,500 1,190,000 1,070,000 440,000 Gross margin 530,000 530,000 530,000 530,000 265,000 Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income 65,000 400,000 100,000 161,000 37,500