Complete Part Two only
This practice set is designed in two parts. The first part provides a review of the financial statements of a corporation selling sunglasses. Sally's Sunglasses, a corporation, whose primary operation is the sale of sunglasses to on-line customers and retailers in the market. Each student will prepare a financial analysis and Statement of Cash Flow for the company. In the second part, Sally's Sunglasses decides to start producing the sunglasses and selling them directly to customers. All cases of academic dishonesty will be reported to the Office of Student Life. Part One Instructions The financial information for the past two years (2020 and 2019) is provided. Sally's Sunglasses collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Current Ratio 2020 and 2019 b. Quick ratio 2020 and 2019 c. Accounts Receivable Turnover 2020 d. Number of Days Sales in Receivables 2020 (Company policy states 30 days in receivables) e. Inventory Turnover 2020 f. Number of Days Sales in Inventory 2020 (Company policy states 50 days to turn over inventory) 8. Ratio of Liabilities to Stockholders' Equity 2020 h. Rate earned on Total Assets 2020 1. Rate earned on Stockholders' Equity 2020 1. Earnings Per Share 2020 and 2019 The financial statements provided in this practice set can be downloaded from Blackboard. An example of a Statement of Cash Flow has been provided at the end of the Practice Set. Download the files and copy and paste them into an Excel spreadsheet (Income Statement and Balance Sheet) and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have calculated prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's 2 Page CCOUNTING SOCIETY financial position. Be specific in each of the recommendations and use the ratios to support your analysis. The length should be no more than two paragraphs long. Prepare the memo in a word document so that you can copy and paste the information into the correct area in Blackboard. Make sure that proper English is used along with complete sentences. 6. Prepare the following documents before answering the questions on Blackboard. a. Statement of Cash Flows b. Balance Sheet with horizontal analysis C. Income Statement with vertical analysis d. Worksheet showing your ratios done in Excel e. Prepare the memo in Word analyzing the company's strengths and weaknesses with two recommendations. Once the memo is prepared then you will only need to copy and paste it into the box where indicated in Blackboard. Students must use the memo template that is attached at the end of the practice set. 7. Blackboard Instructions a. Memo analyzing the company's strengths and weaknesses with two recommendations. In Blackboard you will write a memo using ratios to analyze the strengths and weaknesses of the company. Make sure there are no spelling, grammatical, or punctuation errors. Or you can copy and paste the prepared Memo. 7. Blackboard Instructions a. Memo analyzing the company's strengths and weaknesses with two recommendations. In Blackboard you will write a memo using ratios to analyze the strengths and weaknesses of the company. Make sure there are no spelling, grammatical, or punctuation errors. Or you can copy and paste the prepared Memo. b. Add information concerning numbers here and enter Blackboard as specified below i. When the answer is in units enter the number as is such as 280 ii. When the answer is for ratios (ie. Current ratio) and has a decimal take the decimal out two decimal spaces such as 280.89 ill. When ratios are in days/times take out to two decimal places and write days or times after the number such as 280.96 days or times iv. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add.00 such as $280.00 or $3,800.00 Please follow all instructions. If the answers are formatted incorrectly the answer will be counted wrong. 8. After the above documents are completed go into Blackboard and answer all the questions in the allotted time frame. Remember once you click to start the assignment the time will start running and it will not stop until time is up. If you try to stop the clock and resume it later, you will miss out on completing the assignment. After you have entered all the information into Blackboard, print out the documents that you prepared in step 6 and turn them in to your instructor. Comparative Statement of Retained Earnings Sally's Sunglasses Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2020 and 2019 2020 2019 Retained Earnings, Beginning $ 150,000 $ 130,000 of Year Net Income $ 130,900 59,500 Less: Dividends $ 80,900 $ 39,500 Retained Earnings, End of Year $ 200,000 $ 150,000 1. Equipment with a cost of $50,000 on which accumulated depreciation has been recorded for $7,000 was sold for $41,000 cash. Additional equipment was purchased using a long-term note payable and cash. 2. Stock was issued for cash. 3. Dividends were paid in cash. Comparative Income Statement Sally's Sunglasses Inc. Comparative Statement of Income For the Years Ended December 31, 2020 and 2019 2020 2019 $ 850,000 $ 475,000 $375,000 $ 790,000 $ 450,000 $ 340,000 $ $ $ Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Loss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income $ 120,000 $ 30,000 $ 32,000 $ 182,000 $ 193,000 $ 2,000 $ 4,000 $ -6,000 200,000 40,000 10,000 250,000 90,000 un $ $ $ $ 5,000 -5,000 $ 187,000 S 56,100 $ 130,900 $ S $ 85,000 25,500 59,500 2020 2019 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Notes Payable Salaries Payable Federal Income Taxes Payable Total Current Liabilities $ $ $ $ $ 75,000 20,000 40,000 10,000 145,000 $ $ $ $ $ 40,000 60,000 30,000 25,000 155,000 Long Term Liabilities Note Payable Total Liabilities $ $ 60,000 205,000 37,000 192,000 $ 130,000 Stockholders' Equity: Common Stock, S5 Par Paid-In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ $ $ $ 175,000 25,000 200,000 400,000 605,000 $ $ $ $ 150,000 280,000 472,000 Comparative Balance Sheet Sally's Sunglasses Inc. Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Assets Current Assets: Cash Accounts Receivable, Net Inventory (sunglasses) Prepaid Insurance Prepaid Rent Total Current Assets $ $ $ $ $ $ 90,000 130,000 135,000 25,000 $ $ $ $ 70,000 90,000 80,000 20,000 12,000 272,000 380,000 $ Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets $ $ $ $ 300,000 -75,000 225,000 605,000 250,000 -50,000 200,000 472,000 $ S Part Two Instructions Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX XXX Direct Materials Conversion Polarized Lenses Costs XXX XXX Beginning XXX XXX XXX XXX Start/Completed Completed/Transferred Out XXX XXX XXX XXX Ending XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses. (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses. 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses. 8. Prepare a cost of Production report. This report should show all costs transferred into Work-in-process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead 8 Page CCOUNTING e) Gross Margin f) Income from Operations g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this e) Gross Margin f) Income from Operations g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries 10000 11000 12000 12100 14000 14100 15000 15050 16000 20000 40000 50000 Chart of Accounts Cash Accounts Receivable Plastic Material Inventory Lens Material Inventory Prepaid Rent Prepaid Insurance WIP FOH FG Wages Payable Sales COGS a. Record the purchase of the materials using cash b. Record the materials transferred to WIP c. Record the direct labor using cash d. Record the applied FOH e. Record the actual FOH using cash f. Record over or under applied FOH 8. Record the transfer of goods from WIP to FG h. Record the sale of goods on account i. Record the cost of the inventory that was sold Add information concerning numbers here and enter into Blackboard as specified below a. When the answer is in units enter the number as is (See example below) i. 280 b. When the answer is for ratios (ie.%) and it has a decimal take the decimal out to two spaces (See example below) ii. 280.89 C. When ratios are in days/times take out to two decimal places (See example below) iii. 280.96 days d. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add .00 (See example below) iv. $280.00 or $3,800.00 e. When there is a single journal entry enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, and amount (note the signs, decimals, spaces, and capital letter) v. Dr 10000 $280.00 Cr 20000 $280.00 f. When there is a journal entry requiring two debits or credits enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, amount, and always put the smaller account number FIRST (note the signs, decimals, spaces, capital letters and order of the accounts) vi. Dr 10000 $280.00 Dr 60000 $40.00 Cr 20000 $300.00 vil. Dr 10000 $300.00 Cr 20000 $280.00 Cr 90000 $40.00 viii. Dr 10000 $280.00 Dr 60000 $40.00 Cr 70000 $290.00 Cr 90000 $10.00 8. When there is a sale enter the sale first and then add the COGS and the transfer of Inventory i. Dr 10000 $10,368.00 Cr 40000 $10,000.00 Cr 26833 $368.00 Dr 50000 $70,000.00 Cr 12000 $50,000.00 Cr 12100 $20,000.00 h. Follow examples exactly as are! Do NOT copy and paste from Excel into Blackboard. If your entry is formatted incorrectly it will be counted wrong. Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX Direct Materials Conversion Polarized Lenses Costs XXX XXX XXX Beginning Start/Completed Completed/Transferred Out XXX XXX XXX XXX XXX XXX XXX XXX Ending XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses. (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead This practice set is designed in two parts. The first part provides a review of the financial statements of a corporation selling sunglasses. Sally's Sunglasses, a corporation, whose primary operation is the sale of sunglasses to on-line customers and retailers in the market. Each student will prepare a financial analysis and Statement of Cash Flow for the company. In the second part, Sally's Sunglasses decides to start producing the sunglasses and selling them directly to customers. All cases of academic dishonesty will be reported to the Office of Student Life. Part One Instructions The financial information for the past two years (2020 and 2019) is provided. Sally's Sunglasses collection policy is 30 days and the benchmark for the inventory is 35 days. Using a spreadsheet application, such as Microsoft Excel, and the information from the previous years, provide the following: 1. Prepare a Statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Current Ratio 2020 and 2019 b. Quick ratio 2020 and 2019 c. Accounts Receivable Turnover 2020 d. Number of Days Sales in Receivables 2020 (Company policy states 30 days in receivables) e. Inventory Turnover 2020 f. Number of Days Sales in Inventory 2020 (Company policy states 50 days to turn over inventory) 8. Ratio of Liabilities to Stockholders' Equity 2020 h. Rate earned on Total Assets 2020 1. Rate earned on Stockholders' Equity 2020 1. Earnings Per Share 2020 and 2019 The financial statements provided in this practice set can be downloaded from Blackboard. An example of a Statement of Cash Flow has been provided at the end of the Practice Set. Download the files and copy and paste them into an Excel spreadsheet (Income Statement and Balance Sheet) and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and step three and along with the ratios that you have calculated prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two recommendations to improve the company's 2 Page CCOUNTING SOCIETY financial position. Be specific in each of the recommendations and use the ratios to support your analysis. The length should be no more than two paragraphs long. Prepare the memo in a word document so that you can copy and paste the information into the correct area in Blackboard. Make sure that proper English is used along with complete sentences. 6. Prepare the following documents before answering the questions on Blackboard. a. Statement of Cash Flows b. Balance Sheet with horizontal analysis C. Income Statement with vertical analysis d. Worksheet showing your ratios done in Excel e. Prepare the memo in Word analyzing the company's strengths and weaknesses with two recommendations. Once the memo is prepared then you will only need to copy and paste it into the box where indicated in Blackboard. Students must use the memo template that is attached at the end of the practice set. 7. Blackboard Instructions a. Memo analyzing the company's strengths and weaknesses with two recommendations. In Blackboard you will write a memo using ratios to analyze the strengths and weaknesses of the company. Make sure there are no spelling, grammatical, or punctuation errors. Or you can copy and paste the prepared Memo. 7. Blackboard Instructions a. Memo analyzing the company's strengths and weaknesses with two recommendations. In Blackboard you will write a memo using ratios to analyze the strengths and weaknesses of the company. Make sure there are no spelling, grammatical, or punctuation errors. Or you can copy and paste the prepared Memo. b. Add information concerning numbers here and enter Blackboard as specified below i. When the answer is in units enter the number as is such as 280 ii. When the answer is for ratios (ie. Current ratio) and has a decimal take the decimal out two decimal spaces such as 280.89 ill. When ratios are in days/times take out to two decimal places and write days or times after the number such as 280.96 days or times iv. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add.00 such as $280.00 or $3,800.00 Please follow all instructions. If the answers are formatted incorrectly the answer will be counted wrong. 8. After the above documents are completed go into Blackboard and answer all the questions in the allotted time frame. Remember once you click to start the assignment the time will start running and it will not stop until time is up. If you try to stop the clock and resume it later, you will miss out on completing the assignment. After you have entered all the information into Blackboard, print out the documents that you prepared in step 6 and turn them in to your instructor. Comparative Statement of Retained Earnings Sally's Sunglasses Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2020 and 2019 2020 2019 Retained Earnings, Beginning $ 150,000 $ 130,000 of Year Net Income $ 130,900 59,500 Less: Dividends $ 80,900 $ 39,500 Retained Earnings, End of Year $ 200,000 $ 150,000 1. Equipment with a cost of $50,000 on which accumulated depreciation has been recorded for $7,000 was sold for $41,000 cash. Additional equipment was purchased using a long-term note payable and cash. 2. Stock was issued for cash. 3. Dividends were paid in cash. Comparative Income Statement Sally's Sunglasses Inc. Comparative Statement of Income For the Years Ended December 31, 2020 and 2019 2020 2019 $ 850,000 $ 475,000 $375,000 $ 790,000 $ 450,000 $ 340,000 $ $ $ Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Loss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income $ 120,000 $ 30,000 $ 32,000 $ 182,000 $ 193,000 $ 2,000 $ 4,000 $ -6,000 200,000 40,000 10,000 250,000 90,000 un $ $ $ $ 5,000 -5,000 $ 187,000 S 56,100 $ 130,900 $ S $ 85,000 25,500 59,500 2020 2019 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Notes Payable Salaries Payable Federal Income Taxes Payable Total Current Liabilities $ $ $ $ $ 75,000 20,000 40,000 10,000 145,000 $ $ $ $ $ 40,000 60,000 30,000 25,000 155,000 Long Term Liabilities Note Payable Total Liabilities $ $ 60,000 205,000 37,000 192,000 $ 130,000 Stockholders' Equity: Common Stock, S5 Par Paid-In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ $ $ $ 175,000 25,000 200,000 400,000 605,000 $ $ $ $ 150,000 280,000 472,000 Comparative Balance Sheet Sally's Sunglasses Inc. Comparative Balance Sheet December 31, 2020 and 2019 2020 2019 Assets Current Assets: Cash Accounts Receivable, Net Inventory (sunglasses) Prepaid Insurance Prepaid Rent Total Current Assets $ $ $ $ $ $ 90,000 130,000 135,000 25,000 $ $ $ $ 70,000 90,000 80,000 20,000 12,000 272,000 380,000 $ Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets $ $ $ $ 300,000 -75,000 225,000 605,000 250,000 -50,000 200,000 472,000 $ S Part Two Instructions Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX XXX Direct Materials Conversion Polarized Lenses Costs XXX XXX Beginning XXX XXX XXX XXX Start/Completed Completed/Transferred Out XXX XXX XXX XXX Ending XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses. (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses. 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses. 8. Prepare a cost of Production report. This report should show all costs transferred into Work-in-process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead 8 Page CCOUNTING e) Gross Margin f) Income from Operations g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this e) Gross Margin f) Income from Operations g) Net Income 10. Prepare the necessary Journal Entries related to the manufacturing cycle for this accounting period. Prepare journal entries for the accounting period. Use the account numbers in the chart of accounts, below, instead of the accounts names when writing the journal entries 10000 11000 12000 12100 14000 14100 15000 15050 16000 20000 40000 50000 Chart of Accounts Cash Accounts Receivable Plastic Material Inventory Lens Material Inventory Prepaid Rent Prepaid Insurance WIP FOH FG Wages Payable Sales COGS a. Record the purchase of the materials using cash b. Record the materials transferred to WIP c. Record the direct labor using cash d. Record the applied FOH e. Record the actual FOH using cash f. Record over or under applied FOH 8. Record the transfer of goods from WIP to FG h. Record the sale of goods on account i. Record the cost of the inventory that was sold Add information concerning numbers here and enter into Blackboard as specified below a. When the answer is in units enter the number as is (See example below) i. 280 b. When the answer is for ratios (ie.%) and it has a decimal take the decimal out to two spaces (See example below) ii. 280.89 C. When ratios are in days/times take out to two decimal places (See example below) iii. 280.96 days d. When the answer is in dollars ALWAYS include a dollar sign and cents even if the cents is zero add .00 (See example below) iv. $280.00 or $3,800.00 e. When there is a single journal entry enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, and amount (note the signs, decimals, spaces, and capital letter) v. Dr 10000 $280.00 Cr 20000 $280.00 f. When there is a journal entry requiring two debits or credits enter information EXACTLY as is below in the sequence of Dr/Cr, Account Number, amount, and always put the smaller account number FIRST (note the signs, decimals, spaces, capital letters and order of the accounts) vi. Dr 10000 $280.00 Dr 60000 $40.00 Cr 20000 $300.00 vil. Dr 10000 $300.00 Cr 20000 $280.00 Cr 90000 $40.00 viii. Dr 10000 $280.00 Dr 60000 $40.00 Cr 70000 $290.00 Cr 90000 $10.00 8. When there is a sale enter the sale first and then add the COGS and the transfer of Inventory i. Dr 10000 $10,368.00 Cr 40000 $10,000.00 Cr 26833 $368.00 Dr 50000 $70,000.00 Cr 12000 $50,000.00 Cr 12100 $20,000.00 h. Follow examples exactly as are! Do NOT copy and paste from Excel into Blackboard. If your entry is formatted incorrectly it will be counted wrong. Using a spreadsheet prepared in Excel and based on the information provided in the next section, complete the following requirements: 1. Determine the predetermined overhead rate. 2. Determine the total number of sunglasses to account for. 3. Prepare an equivalent unit's schedule. The schedule should follow the format below; you may add additional information if you would like. Equivalent Units Whole Units Direct Materials Plastic Frame XXX Direct Materials Conversion Polarized Lenses Costs XXX XXX XXX Beginning Start/Completed Completed/Transferred Out XXX XXX XXX XXX XXX XXX XXX XXX Ending XXX XXX XXX XXX 4. Determine the total costs for the plastic frames and the unit plastic-frame cost for each pair of sunglasses. (Round to the nearest cent) 5. Determine the total costs for the polarized lenses and the unit lens amount per pair of sunglasses. (Round to the nearest cent) 6. Determine the total conversion cost and the conversion cost per pair of sunglasses. (Round to the nearest cent.) 7. Calculate the total equivalent unit cost for each pair of sunglasses 8. Prepare a Cost of Production report. This report should show all costs transferred into Work-in-Process and the costs transferred to Finished Goods. This process uses FIFO costing. Round all answers to the nearest cent. 9. Determine the amounts for the following. Show calculations for credit. a) Ending Work-in-Process Inventory in Units AND Dollars b) Ending Finished Goods Inventory in Units AND Dollars c) Cost of Goods Sold d) Over/Under Applied Manufacturing Overhead
