Fill in the Missing Data for Company B

question 145

Short Answer

Fill in the missing data for Company B:
$\begin{array}{|l|c|}\hline &\text { Company B }\\\hline \text { Direct materials used } & \$ 9,000 \\\hline \text { Direct labor cost } & 4,000 \\\hline \text { Overhead } & \text { (a) } \\\hline \text { Total manufacturing costs } & 25,000\\\hline \text { Work in process inventory, Jan. } 1 & 1,000 \\\hline \text { Work in process inventory, Dec. } 31 & 3,500 \\\hline \text { Sales revenue } & 40,000\\\hline \text { Finished goods inventory, Jan. } 1 & \text { (b) } \\\hline \text { Cost of goods manufactured } & \text { (c) } \\\hline \text { Cost of goods available for sale } & \text { (d) } \\ \hline \text { Finished goods inventory, Dec. } 31 & 4,000 \\\hline \text { Cost of goods sold } & 26,500 \\\hline \text { Gross margin } & \text { (e) } \\\hline \text { Operating expenses } & \text { (f) } \\ \hline\text { Net operating income }&5,500\\ \hline\end{array}$

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Definitions:

Work In Process

Inventory that includes goods partially completed; represents raw materials, labor, and overhead costs incurred in the manufacturing process.

Production Departments

Divisions within a manufacturing company responsible for different stages of the production process.

Direct Materials

Raw materials that can be directly traced to the production of a specific good or service in manufacturing or production.

Factory Overhead

Factory overhead refers to the indirect manufacturing costs not directly tied to the production of goods, such as utilities or management salaries.