An auditor for the Internal Revenue Service is trying to reconstruct - 74799

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yousafbhutta

yousafbhutta

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Request Description

2-42 Finding unknown amounts. An auditor for the Internal Revenue Service is trying to reconstruct some partially destroyed records of two taxpayers. For each of the cases in the accompanying list, find the unknowns designated by the letters A through D.
Case 1 Case 2
(in thousands)
Accounts receivable, 12/31 $ 6,000 $ 2,100
Cost of goods sold A 20,000
Accounts payable, 1/1 3,000 1,700
Accounts payable, 12/31 1,800 1,500
Finished goods inventory, 12/31 B 5,300
Gross margin 11,300 C
Work-in-process inventory, 1/1 0 800
Work-in-process inventory, 12/31 0 3,000
Finished goods inventory, 1/1 4,000 4,000
Direct materials used 8,000 12,000
Direct manufacturing labor 3,000 5,000
Manufacturing overhead costs 7,000 D
Purchases of direct materials 9,000 7,000
Revenues 32,000 31,800
Accounts receivable, 1/1 2,000 1,400

Solution Description

 Finding unknown amounts. An auditor for the

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2-42 solution.xlsx
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