Sales $ 40,000 Direct Materials Direct Labor Overhead $ $ 9,000 4,000 d Total Manufacturing Costs $ 25,000 Work in Process - January 1 Work in Process - December 31 $ 1,000 $ (3,500) Cost of Goods Manufactured Finished Goods Inventory - January 1 Cost of Goods Available for Sale Finished Goods Inventory - December 31 $ (4,000) Cost of Goods Sold $ 26,500 Gross Margin Operating Expenses Net Operating Income $ 5,500