01. Samuels ltd has incurred the following costs for the year

Costs Incurred:

Inventories Beginning of the Year End of the Year

Raw Materials $4,000 $10,000

Work in process $12,000 $6,000

Finished goods $11,000 $20,000

On the basis of above information:

(a) Prepare schedule of cost of goods sold

(b) Prepare income statement for the year

02. Swapno is a merchandise company. Given below is their transaction for the month of January.

Date Explanation Unit Cost/ Unit Total cost

1/1 Beginning inventory 600 $18

5/1 Purchase 450 $22

10/1 Purchase 500 $26

18/1 Purchase 300 $28

During the year 1340 units were sold. A total of 600 units were sold for $35 and remaining for $37. The administrative cost was $1450 and tax was 22%

Required: Determine (i) the ending inventory (ii) the cost of goods sold iii) income statement under all methods

03. Samuels garments purchases a machine for $ 100,000 on Jan 1, 2011. The machine is expected to have a salvage value of $ 10,000 at the end of its 5-year useful life.

During its useful life the machine is expected to be used 100,000 hours. Actual annual hourly use was: 2012, 30000; 2013, 25000; 2014, 10000; 2015, 15000; 2016, 20000.

Required: Prepare depreciation schedule for the machine under Declining balance method, and units of activity method. For Declining Balance method (Use double the rate used for Straight line)

4) Determine how much units must be sold for a company that has selling price of $29, Variable cost per unit $ 12 and Fixed cost of $8000 to reach net income of $4000. Also calculate break even point

Sales $ 229,000

Purchases of raw materials 35,000

Indirect Labor 10,000

Direct Labor 24,000

Maintenance, factory Equipment 3,000

Advertising Expense 30,000

Insurance, factory equipment 800

Salaries (of Factory workers) 35,000

Office supplies 200

Rent(Factory uses 55%, Administrative and sales use the rest) 10,000

Factory Cleaning Supplies 4,200

Purchase of Factory Machine 18000

Depreciation(30% for office furniture & rest for office equipment) 3,000