$266,000 ACCT 1040 Managerial Accounting Excel practice problem chapter 1 Fall 2021 Madlinx Co. is a newly organized company. After five months of start-up losses, management had expected to earn a profit during September. Management was disappointed, however, when the income statement (prepared by an inexperienced non-accountant) for September also showed a loss. September's income statement follows: Madlinx Company Income Statement For the month ended September 30,20xxx Sales less operating expenses: Indirect labor costs $ 7.200 Utilities Direct labor costs Depreciation, factory equipment Raw materials purchased Depreciation, sales equipment 10,400 Insurance Rent on facilities Selling and administrative salaries 23.000 Advertising Net operating loss S (4.200) After seeing the $4,200 loss for September, Madlinx's president stated, "I was sure we'd be profitable within six months, but our six months are up and this loss for September is even worse than Augusts'. I think it's time to start looking for someone to buy out the company's assets if we don't, within a few months there won't be any assets to sell." Additional information about the company follows: a) Some 65% of the utilities cost and 70% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities. b) The inventory balances at the beginning and end of September were: 9.100 47.000 10.000 95.000 2.500 27.000 39.000 270.200 September September 30 Raw Materials $4,600 $7.000 WIP $9,000 $12,000 Finished Goods S24,000 $30.000 90% of the rent on facilities applies to factory operations, the remainder applies to selling and administrative activities. The president has asked you to check out the income statement and make a recommendation as to whether the company should look for a buyer for its assets. Required: 1. Prepare an input section (properly labeled) that contains the information from above to be used in creating the following 2 items: 2. A schedule of cost of goods manufactured for September following the format shown below. a. Remember that some of the given amounts may require a calculation due to a percent being product (manufacturing) cost and part being period (selling/admin) costs. Given II b. There should be a 3-line heading and proper formatting, 3. An income statement in the format shown below for the month of September. The Cost of Goods Manufactured amount comes from the prior schedule. Note that every line is labeled and that the label and the amount are in different cells. Where it says "Given" that amount would be linked in from the input sheet. Cost of Goods Manufactured Layout: Direct materials: Raw materials inventory, September 1 Given Add: Purchases of raw materials Raw materials available for use Formula Deduct: Raw materials inventory, September 30 Given Raw materials used in production Formula Direct labor Given Manufacturing overhead: Indirect labor cost Given Utilities Given Depreciation, factory equipment Insurance Rent on facilities Total overhead costs Formula Total manufacturing costs Formula Add: Work in process inventory, September 1 Given Formula Deduct: Work in process inventory, September 30 Given Cost of goods manufactured Formula Given Given Given Income Statement Layout: Given Sales Cost of Goods Sold: Beginning Finished Goods Cost of Goods Manufactured Given Linked Goods available for Sale Ending Finished Goods Formula Given Cost of Goods Sold Formula Formula Gross Profit Operating Expenses: Utilities Expense Depreciation Expense, Sales Eq. Insurance Expense Rent Expense Selling and administrative salaries Expense Advertising Expense Given Given Given Given Given Given Total operating expenses Formula Net Operating Income Formula