P 1. The following information is from the trial balance of Mills Manufacturing Company:

Debit Credit Cash $ 34,000 Accounts Receivable 27,000 Materials Inventory, ending 31,000 Work in Process Inventory, ending 47,900 Finished Goods Inventory, ending 54,800 Production Supplies 5,700 Small Tools 9,330 Land 160,000 Factory Building 575,000 Accumulated Depreciation–Factory Building $ 199,000 Factory Equipment 310,000 Accumulated Depreciation–
Factory Equipment 137,000 Patents 33,500 Accounts Payable 26,900 Insurance Premiums Payable 6,700 Income Taxes Payable 41,500 Mortgage Payable 343,000 Common Stock 200,000 Retained Earnings 334,130 $1,288,230 $1,288,230 Required 1. Manufacturing organizations use asset accounts that are not needed by retail organizations.

a. List the titles of the asset accounts that are specifically related to manufacturing organizations.

b. List the titles of the asset, liability, and equity accounts that you would see on the balance sheets of both manufacturing and retail organizations.
2. Assuming that the following information reflects the results of operations for the year, calculate the

(a) gross margin,

(b) cost of goods sold,

(c) cost of goods available for sale, and

(d) cost of goods manufactured:
Operating income $138,130 Operating expenses 53,670 Sales 500,000 Finished goods inventory, beginning 50,900 3. Does Mills Manufacturing use the periodic or perpetual inventory system?

Computation of Unit Cost