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I a 1 of 3 Download View as Text Class Practice Q1. Prepare income statement from the following information Home entertainment, a retailer of CD's and DVD's, provided the following information for the month of June Sales 150,000 selling expenses 40,000 administrative expenses 25,000 merchandise inventory, 12,000 beginning balance merchandise inventory, ending 22,000 balance merchandise purchases 90,000 Answer- HOME ENTERTAINMENT INCOME STATEMENT FOR THE MONTH OF JUNE Sales 150,000 Less-Cost of goods sold: Beginning inv 12000 90000 + purchases (80,000) 22000 Ending in Gross margin 70,000 Less-operating expenses 25000 Adver 40000 (65000) selling Operating income 5000 2 of 3 + View as Text Download Q2. Rubicorn company had a beginning balance in raw materials inventory of $76,000 on Novemberi and an ending balance of $58,000 on November 30. During the month additional materials purchased totaled $126,000. Company used $24.000 in indirect materials for the month. Calculate total Direct Materials placed in production. Solution Beginning inventory of raw materials $76000 Add-Purchases of raw materials $126,000 Less-Ending inventory of raw materials ($58.000) Total raw materials placed in production $144,000 Less-Indirect raw materials $24000 DIRECT MATERIALS $120.000 Q3. Prepare a schedule of Cost of goods manufactured Following information is given to you for Newcastle manufacturing company direct materials 118,000 direct labour 52,000 manufacturing overhead 54.000 WIP inventory, beginning 102,000 WIP inventory, ending 94,000 Answer-Cost of goods manufactured = $232,000 DIRECT MATERIALS+DIRECT LABOUR+MANUFACTURING O/H+OPENING WIP-CLOSING WIP-COG MANUFACTURED I a 3 of 3 + View as Text Download Q4. Pass the journal entries for the following transactions- a. Purchased raw materials on credit for $10,000 b. sold merchandise on credit $2400 C. Payment received for sale made in (b), $1000 d. Manufacturing overhead transfer to WIP, $3000 Answer- a. Merchandise Inventory, Raw materials.....10,000 Accounts Payable.... ..10,000 .2400 b. Accounts Receivable...... Sales... ..2400 C. Cash...........1000 Accounts Receivable..........1000 d. WIP... ...........3000 Manufacturing Overheads........3000