Exercise PR1-5A financial & managerial Accounting Edition 15

Rainier Yakima Company Company Materials inventory, May 1 $ 100,000 $ 48,200 Materials inventory, May 31 (a) 50,000 Materials purchased 950,000 710,000 Cost of direct materials used in production 938,500 (a Direct labor 2,860,000 (b Factory overhead 1,800,000 446,000 Total manufacturing costs incurred dui (b) 2,484,200 Total manufacturing costs 5,998,500 2,660,600 Work in process inventory, May 1 400,000 176,400 Work in process inventory, May 31 382,000 (c) Cost of goods manufactured (c) 2,491,500 Finished goods inventory, May 1 515,000 190,000 Finished goods inventory, May 31 596,500 (d) Sales 9,220,000 4,550,000 Cost of goods sold (d) 2,470,000 Gross profit (e) (e) Operating expenses 1,000,000 (f) Net income (f) 1,500,000 2. Yakima Company Statement of Cost of Goods Manufactured For the Month Ended May 31 Work in process inventory, May 1 Direct materials: Cost of direct materials used Direct labor Factory overhead Total manufacturing costs incurred during May Total manufacturing costs Cost of goods manufactured Yakima Company Income Statement For the Month Ended May 31 Sales Cost of goods sold: Cost of finished goods available for sale Cost of goods sold Gross profit Operating expenses Net incomeObj. 4, 5 PR 1-5A Transactions; financial statements /3. Net income: D'Lite Dry Cleaners is owned and operated by Joel Palk, A building and equipment are currently $63,775 being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and common stock of the business on July 1, 20Y4, are as follows: Cash, $45,000; Accounts Receivable, $93,000; Supplies, $7,090; Land, $75,000; Accounts Payable, $40,000; Common Stock, $60,000. Business transactions during July are A TEMPLATE summarized as follows: a. Joel Palk invested additional cash in exchange for common stock with a deposit of $35,000 in the business bank account. b. Paid $50,000 for the purchase of land adjacent to land currently owned by D'Lite Dry Cleaners as a future building site. c. Received cash from customers for dry cleaning revenue, $32, 125. d. Paid rent for the month, $6,000. e. Purchased supplies on account, $2,500. f. Paid creditors on account, $22,800. g. Charged customers for dry cleaning revenue on account, $84,750. h. Received monthly invoice for dry cleaning expense for July (to be paid on August 10), $29,500. Paid the following: wages expense, $7,500; truck expense, $2,500; utilities expense, $1,300; miscellaneous expense, $2,700. J. Received cash from customers on account, $88,000. . Determined that the cost of supplies on hand was $5,900; therefore, the cost of supplies used during the month was $3.600. 1. Paid dividends, $12,000. Instructions 1. Determine the amount of retained earnings as of July 1, 20Y4. 2. State the assets, liabilities, and stockholders' equity as of July 1 in equation form similar to that shown in this chapter, In tabular form below the equation, indicate increases and decreases resulting from each transaction and the new balances after each transaction. 3. Prepare an income statement for July, a statement of stockholders' equity for July, and a balance sheet as of July 31. (Optional) Prepare a statement of cash flows for July