Questions: Check my work Required: Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) 1.87 Note: Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values. Case 1 Case 2 Case 3 ------------ Direct materials used 20,000 11,700 Direct labor 10,000 Manufacturing overhead applied 15,000 10,000 Total current manufacturing costs 45,000 25,500 31,500 Beginning work in process inventory 8,300 8,200 Ending work in process inventory 5,500 8,700 Cost of goods manufactured 47,800 42,000 11,001 Beginning finished goods inventory 4,700 10,800 Ending finished goods inventory 8,200 Cost of goods sold 44,300 6,000

Solution Steps

1. Case 1:

   • Use the formula for Cost of Goods Manufactured (COGM): \[ \text{COGM} = \text{Total Manufacturing Costs} + \text{Beginning WIP Inventory} - \text{Ending WIP Inventory} \]
   • Solve for any missing values using the given data.

2. Case 2:

   • Use the formula for Cost of Goods Sold (COGS): \[ \text{COGS} = \text{COGM} + \text{Beginning Finished Goods Inventory} - \text{Ending Finished Goods Inventory} \]
   • Solve for any missing values using the given data.

3. Case 3:

   • First, solve for Conversion Costs using: \[ \text{Conversion Costs} = \text{Direct Labor} + \text{Manufacturing Overhead} \]
   • Use the Total Manufacturing Costs to find the missing values.

Using the formula for Cost of Goods Manufactured (COGM): \[ \text{COGM} = \text{Total Manufacturing Costs} + \text{Beginning WIP Inventory} - \text{Ending WIP Inventory} \] Substituting the values: \[ \text{COGM}_1 = 45000 + 8300 - 5500 = 47800 \]

Using the formula for Cost of Goods Sold (COGS): \[ \text{COGS} = \text{COGM} + \text{Beginning Finished Goods Inventory} - \text{Ending Finished Goods Inventory} \] Substituting the values: \[ \text{COGS}_2 = 42000 + 10800 - 8200 = 44600 \]

Using the formula for Conversion Costs: \[ \text{Conversion Costs} = \text{Total Manufacturing Costs} - \text{Direct Materials} \] Substituting the values: \[ \text{Conversion Costs}_3 = 31500 - 11700 = 19800 \]

Final Answer