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Using the Following Information Find the Unknown Amounts

question 6

Essay

Using the following information find the unknown amounts.Assume each set of information is an independent case.
a. Merchandise Inventory  Purchases $210,000 Cost of goods sold 223,000 Beginuing balance 41,000 Ending balance ?b. Direct Materials  Beginuing balance $7,000 Ending balance 14,000 Purchases 48,000 Direct materials used ? c.Work-in-process Inventory  Ending balance $22,000 Cost of goods manufactured 21,000 Beginning balance 8,000 Current manufacturing costs ?d. Finished Goods Inventory  Cost of goods manufactured $62,000 Ending balance 20,000 Cost of goods sold 61,000 Eeginuing balance ?\begin{array}{llr}\text {a. Merchandise Inventory } & \text { Purchases } & \$ 210,000 \\& \text { Cost of goods sold } & 223,000 \\& \text { Beginuing balance } & 41,000 \\& \text { Ending balance } & ?\\\\\text {b. Direct Materials } & \text { Beginuing balance } & \$ 7,000 \\& \text { Ending balance } & 14,000 \\& \text { Purchases } & 48,000 \\& \text { Direct materials used } & ?\\\\\text { c.Work-in-process Inventory } & \text { Ending balance } & \$ 22,000 \\& \text { Cost of goods manufactured } & 21,000 \\& \text { Beginning balance } & 8,000 \\& \text { Current manufacturing costs } & ?\\\\\text {d. Finished Goods Inventory } & \text { Cost of goods manufactured } & \$ 62,000 \\& \text { Ending balance } & 20,000 \\& \text { Cost of goods sold } & 61,000 \\& \text { Eeginuing balance } & ?\end{array}

Identify and analyze fixed and variable costs in short-run production.
Calculate and interpret total, average, and marginal costs based on different inputs and outputs.
Grasp the law of diminishing returns and its effect on production and costs.
Understand the concept of economic profit versus accounting profit by incorporating both explicit and implicit costs.

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