5.Information for Jason Metalworks as of December 31 follows.

Administrative salaries expense

$135,000

Depreciation expenseFactory equipment

52,400

Depreciation expenseDelivery vehicles

36,200

Depreciation expenseOffice equipment

24,800

Advertising expense

22,350

Direct labor

268,000

Factory supplies used

12,000

Income taxes expense

91,500

Indirect labor

35,000

Indirect material

24,000

Factory insurance

15,500

Factory utilities

14,000

Factory maintenance

7,500

Inventories

Raw materials inventory, January 1

32,000

Raw materials inventory, December 31

28,000

Work in Process inventory, January 1

33,780

Work in Process inventory, December 31

37,460

Finished goods inventory, January 1

56,970

Finished goods inventory, December 31

62,000

Raw materials purchases

325,000

Rent expenseFactory

50,000

Rent expenseOffice space

24,000

Rent expenseSelling Space

24,000

Sales salaries expense

97,500

Sales

1,452,000

Sales discounts

29,000

Required:

(a)Prepare the company's schedule of cost of goods manufactured for the year ended December 31

(b)Prepare the company's income statement that reports separate categories for selling and general and administrative expenses.

Accounting for Business Operations ACC 20364 - Final Examination 1. Bella's Beauty Salon's unadjusted trial balance for the current year follows: Additional information: a. An insurance policy examination showed $1,240 of expired insurance. b. An inventory count showed $210 of unused shop supplies still available. c. Depreciation expense on shop equipment, $350. d. Depreciation expense on the building, $2,220. e. A beautician is behind on space rental payments and $200 of accrued revenue was unrecorded at the time the trial balance was prepared. f. $800 of the Unearned Rent account balance was earned by year-end. g. The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked four days this week for which she has not been paid. h. Three months' property taxes, totaling $450, have accrued. This additional amount of property taxes expense has not been recorded. i. One month's interest on the note payable, $600, has accrued but is unrecorded. Required: Based on the additional information, prepare the adjusting journal entries for Bella's Beauty Salon. 2. The following is the adjusted trial balance for Rapid Car Services for the most recent year: Rapid Car Services, Inc. Adjusted Trial Balance For the year ended December 31 Cash Accounts receivable Office supplies Vehicles Accumulated depreciationVehicles Accounts payable Common stock Retained earnings Dividends Fees earned Rent expense Office supplies expense Utilities expense Depreciation ExpenseVehicles Salary expense Fuel expense Totals $33,000 14,200 1,700 100,000 45,000 11,500 1,000 70,900 40,000 155,000 13,000 2,000 2,500 15,000 50,000 12,000 $283,400 $283,40 0 Required: Prepare the following financial statements for Rapid Car Services, Inc. from the adjusted trial balance. Assume the stockholders did not make any additional investments in the company during the year. Income Statement Statement of Retained Earnings Balance Sheet 3. END Company reported the current month purchase and sales data for its only product as follows: Date April 1 4 7 10 16 25 28 Activities Beginning Inventory Purchase Sales Purchase Sales Purchase Sales Units Acquired at Cost 175 units @ $15.00 150 units @ $16.00 Units Sold at Retail 160 units @ $30.00 200 units @ $17.00 250 units @ $30.00 160 units @ $18.00 150 units @ $32.00 Required: Determine the cost assigned to ending inventory and cost of goods sold using LIFO with the perpetual inventory system. 4. The following information is available for the Edwards Company for its March 31 bank reconciliation: From the March 31 bank statement: NSF: A check from a customer, Cook Co. in payment of their account. IN: Interest earned on the account. From the Edwards Company's accounting records: Required: Based on the above information, prepare the 2-column bank reconciliation for the Edwards Company for March. 5. Information for Jason Metalworks as of December 31 follows. Administrative salaries expense Depreciation expenseFactory equipment Depreciation expenseDelivery vehicles Depreciation expenseOffice equipment Advertising expense Direct labor Factory supplies used Income taxes expense Indirect labor Indirect material Factory insurance Factory utilities Factory maintenance Inventories Raw materials inventory, January 1 Raw materials inventory, December 31 Work in Process inventory, January 1 Work in Process inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Raw materials purchases Rent expenseFactory Rent expenseOffice space Rent expenseSelling Space Sales salaries expense Sales Sales discounts $135,00 0 52,400 36,200 24,800 22,350 268,000 12,000 91,500 35,000 24,000 15,500 14,000 7,500 32,000 28,000 33,780 37,460 56,970 62,000 325,000 50,000 24,000 24,000 97,500 1,452,0 00 29,000 Required: (a) Prepare the company's schedule of cost of goods manufactured for the year ended December 31 (b) Prepare the company's income statement that reports separate categories for selling and general and administrative expenses. 6. Wagner Company is analyzing two alternative methods of producing its product. The production manager indicates that variable costs can be reduced 40% by installing a machine that automates production, but fixed costs would increase. Alternative 1 shows costs before installing the machine; Alternative 2 shows costs after the machine is installed. Variable costs per unit Fixed costs Selling price per unit Income tax rate Alternative 1 $20 $200,000 $40 25% Alternative 2 ? $274,400 $40 25% Required: (a) Compute the break-even point in units and dollars for both alternatives. (b) Prepare a forecasted income statement for both alternatives assuming that 30,000 units will be sold. The statements should report sales, total variable costs, contribution margin, fixed costs, income before taxes, income taxes, and net income. (c) Compute the degree of operating leverage for each alternative. Which alternative would you recommend and why