Able Baker Charlie Company Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarity what the differences between managerial accounting and financial accounting are Ho's also wondering how to set up his inventory, how to classilty the costs of his business, and how to fill in some missing information. Required: Choose whether the characteristics on the Managerial vs. Financial panel are most often associated with managerial accounting or 1. financial accounting. Charles has provided some of the costs he expects to incur on the Cost Classification panel. Decide on the classifications that could be 2. applied to each of these costs using the table provided. The cost object in each case is the cheeseocake 3. Charles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B on the income Statements panel, and balance sheets C and D on the Balance Sheets panel. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie comparny. Then, on the Financial Statements panel, denote which income statement and balance sheet Would be most appropriate for a manufacturing business. 4. At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. On the Costs and Balances panel, determine the missing amounts Note: It may be helptul to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values Income Statements Income Statement A (scroll down for Income Statement B): Sample Company A Income Statement For the Year Ended December 31, 20Y8 1 Sales $42,000.00 2 Cost of goods sold: Beginning finished goods inventory 3 $5,250.00 Plus cost of goods manufactured 4 6,400.00 S Cost of finished goods available for sale 6Less ending finished goods inventory 7Cost of goods sold $11,650.00 400.00 11,250.00 Gross profit $30,750.00 9 Operating expenses 10 Selling expenses $6,400.00 11 Administrative expenses 5,250.00 Total operating expenses 12 11,650.00 15 Net income $19,100.00 Income Statement B: Sample Company B Income Statement For the Year Ended December 31, 20Y8 1 Sales $42,000.00 1Cost of goods sold: 3 Beginning merchandise inventory 4 Plus net purchases SMerchandise available for sale $5,250.00 6,400.00 $11,650.00 Less ending merchandise inventory 6 400.00 Cost of merchandise sold 7 11,250.00 Gross profit $30,750.00 9 Operating expenses: 10 Selling expenses $6,400.00 11 Administrative expenses 5,250.00 Total operating expenses 12 11,650.00 13 Net income $19,100.00 Balance Sheets nd Balance Sheet C (scroll down for Balance Sheet D): Sample Company C Balance Sheet December 31, 20Y8 Assets 1 $20,800.00 Cash 10,000.00 Accounts receivable (net) 6,000.00 Merchandise inventory 4 S Supplies 2,100.00 17,000.00 Land 6 $55,900.00 7 Total assets Liabilities 9 Accounts payable $17,800.00 Stockholders' Equity 10 11 Common stock $19,000.00 12 Retained earnings 19,100.00 13 Total stockholders' equity 38,100.00 Total liabilities and stockholders' equity 14 $55,900.00 Ind Balance Sheets Balance Sheet D: Sample Company D Balance Sheet December 31, 20Y8 Assets $20,800.00 Cash 10,000.00 Accounts receivable (het) Inventories Finished goods $2,000.00 Work in process 1,500.00 Materials 2,500.00 1 6,000.00 Supplies 2,100.00 Land 17,000.00 1o Total assets $55,900.00 11 Liabilitles Accounts payable $17,800.00 Stockholders' Equity 13 14 Common stock $19,000.00 Inc ssRetained earnings 19,100.00 Total stockholders' equity 38,100.00 Total iabilities and stockholders' equity $55,900.00 Shaded cells have feedback. Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured Data for February Decrease in materials inventorys $3,600 50% of materials inventory on Jan. 31 Materials inventory on Feb. 28 $11,700 Direct materials purchased 3 times the direct labor incurred Direct materials used $29,400 Total manufacturing costs incurred in period 70 % of Cost of Goods Manufactured Total manufacturing costs incurred in period $7000 less than Cost of Goods Sold Total manutacturing costs incurred in period Account Balances Costs Incurred Feb. 28 Jan. 31 Account Direct Materials Used Materials Inventory Work in ProcessInventory Einished Goods Inventory Direct Labor Incurred 21,000 Factory Overhead Incurred 17.000 Cost of Goods Sold 0/8 Points: Able Baker Charlie Company Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarity what the differences between managerial accounting and financial accounting are Ho's also wondering how to set up his inventory, how to classilty the costs of his business, and how to fill in some missing information. Required: Choose whether the characteristics on the Managerial vs. Financial panel are most often associated with managerial accounting or 1. financial accounting. Charles has provided some of the costs he expects to incur on the Cost Classification panel. Decide on the classifications that could be 2. applied to each of these costs using the table provided. The cost object in each case is the cheeseocake 3. Charles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B on the income Statements panel, and balance sheets C and D on the Balance Sheets panel. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie comparny. Then, on the Financial Statements panel, denote which income statement and balance sheet Would be most appropriate for a manufacturing business. 4. At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. On the Costs and Balances panel, determine the missing amounts Note: It may be helptul to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values Income Statements Income Statement A (scroll down for Income Statement B): Sample Company A Income Statement For the Year Ended December 31, 20Y8 1 Sales $42,000.00 2 Cost of goods sold: Beginning finished goods inventory 3 $5,250.00 Plus cost of goods manufactured 4 6,400.00 S Cost of finished goods available for sale 6Less ending finished goods inventory 7Cost of goods sold $11,650.00 400.00 11,250.00 Gross profit $30,750.00 9 Operating expenses 10 Selling expenses $6,400.00 11 Administrative expenses 5,250.00 Total operating expenses 12 11,650.00 15 Net income $19,100.00 Income Statement B: Sample Company B Income Statement For the Year Ended December 31, 20Y8 1 Sales $42,000.00 1Cost of goods sold: 3 Beginning merchandise inventory 4 Plus net purchases SMerchandise available for sale $5,250.00 6,400.00 $11,650.00 Less ending merchandise inventory 6 400.00 Cost of merchandise sold 7 11,250.00 Gross profit $30,750.00 9 Operating expenses: 10 Selling expenses $6,400.00 11 Administrative expenses 5,250.00 Total operating expenses 12 11,650.00 13 Net income $19,100.00 Balance Sheets nd Balance Sheet C (scroll down for Balance Sheet D): Sample Company C Balance Sheet December 31, 20Y8 Assets 1 $20,800.00 Cash 10,000.00 Accounts receivable (net) 6,000.00 Merchandise inventory 4 S Supplies 2,100.00 17,000.00 Land 6 $55,900.00 7 Total assets Liabilities 9 Accounts payable $17,800.00 Stockholders' Equity 10 11 Common stock $19,000.00 12 Retained earnings 19,100.00 13 Total stockholders' equity 38,100.00 Total liabilities and stockholders' equity 14 $55,900.00 Ind Balance Sheets Balance Sheet D: Sample Company D Balance Sheet December 31, 20Y8 Assets $20,800.00 Cash 10,000.00 Accounts receivable (het) Inventories Finished goods $2,000.00 Work in process 1,500.00 Materials 2,500.00 1 6,000.00 Supplies 2,100.00 Land 17,000.00 1o Total assets $55,900.00 11 Liabilitles Accounts payable $17,800.00 Stockholders' Equity 13 14 Common stock $19,000.00 Inc ssRetained earnings 19,100.00 Total stockholders' equity 38,100.00 Total iabilities and stockholders' equity $55,900.00 Shaded cells have feedback. Costs and Balances At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he's collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured Data for February Decrease in materials inventorys $3,600 50% of materials inventory on Jan. 31 Materials inventory on Feb. 28 $11,700 Direct materials purchased 3 times the direct labor incurred Direct materials used $29,400 Total manufacturing costs incurred in period 70 % of Cost of Goods Manufactured Total manufacturing costs incurred in period $7000 less than Cost of Goods Sold Total manutacturing costs incurred in period Account Balances Costs Incurred Feb. 28 Jan. 31 Account Direct Materials Used Materials Inventory Work in ProcessInventory Einished Goods Inventory Direct Labor Incurred 21,000 Factory Overhead Incurred 17.000 Cost of Goods Sold 0/8 Points