After a computer failure, you are trying to reconstruct some financial results for the year just ended. While you know that backups are available, it will take too long to get the information you want. You have been able to collect the following information:
Direct materials inventory, January 1 (Beginning) . . . . . . . . . . $ 16,000
Direct materials inventory, December 31 (Ending). . . . . . . . . . 12,000
Work-in-process inventory, January 1 (Beginning). . . . . . . . . . 21,200
Work-in-process inventory, December 31 (Ending) . . . . . . . . . 10,000
Finished goods inventory, December 31 (Ending) . . . . . . . . . . 14,080
Purchases of direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . 38,400
Cost of goods manufactured during this year . . . . . . . . . . . . . 88,800
Total manufacturing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77,600
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,040
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,480
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,160
Manufacturing overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,040
Average selling price per unit. . . . . . . . . . . . . . . . . . . . . . . . . . 8

Required
Find the following:
a. Finished goods inventory, January 1.
b. Direct materials used for the year.
c. Gross margin percentage (as a percentage of sales).