Fall 2012 Accounting 202 Midterm Exam 2 Problem 1 Using the following 2012 data, prepare: 1. A Cost of Goods Manufactured Schedule 2. A Cost of Goods Sold Schedule 3. An income statement 4. A Partial Balance Sheet (Current Asset Section] The following data was taken from the records of Kaneohe Dark Chocolate, Inc.'s for the year ending December 31, 2012: Raw Materials Inventory 1/1/12 340,000 Raw Materials Inventory 12/31/12 322,500 Finished Goods Inventory 1/1/12 509,874 Finished Goods Inventory 12/31/12 949,354 Work-In-Process Inventory 1/1/12 125,000 Work-In-Process Inventory 12/31/12 634,212 Direct Labor 375,642 Indirect Labor 150,000 Accounts Receivable 786,234 Factory Insurance 65,000 Factory Machinery Depreciation 45,678 Factory Utilities 125,000 Office Utilities Expense 155,000 Sales 4,653,120 Sales Discounts 347,616 Plant Manager's Salary 85,000 Factory Property Taxes 9,845 Factory Repairs 56,000 Raw Materials Purchases 450,000 Cash 135,467Problem 2 Use the following data to prepare Mind-O-Matic, Inc.'s production cost report for November 2012: Production Data November Beginning work in process units 0 Units started into production 50000 Ending work in process units 10000 Percentage complete - ending inventory 25% Cost added to production: Materials $ 150,000 Direct Labor S 125,000 Manufacturing Overhead 5 45,000Problem 3 Using the Job Order Cost system, journalize the following transactions incurred by Elder Corporation during October 2012: Oct 1. Purchased raw materials on account $46,300. Oct 2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials. Oct 3. Factory labor costs incurred were $53,900, of which $49,000 pertained to factory wages payable and $4,900 pertained to employer payroll taxes payable. Oct 4. Time tickets indicated that $48,000 was direct labor and $5,900 was indirect labor. Oct 5. Overhead costs incurred on account were $80,500. Oct 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. Oct 7. Goods costing $88,000 were completed and transferred to finished goods. Oct 8. Finished goods costing $75,000 to manufacture were sold on account for $103,000.Bonus Use the data provided below to prepare a 2012 statement of cash flow for Kaneohe Raingear & Canopy, Inc. Use the indirect method. Kaneohe Raingear & Canopy, Inc. Comparative Balance Sheets December 31, Assets 2012 2011 234,000 124,689 Accounts Receivable 145,643 225,431 Merchandise inventory 89,000 134,567 Property, plant, and equipment 209,354 124,354 Accumulated depreciation (45,678) (23,456) Total 632 319 585,585 Liabilities and Stockholders Equity Accounts payable 67,000 45,DO0 Income taxes payable 23,124 56,322 Bonds payable 105,000 125,000 Common stock 175,658 114,263 Retained earnings 261,537 245 0DO Total 632 319 585,585 Kaneohe Raingear & Canopy, Inc. Income Statement For the Year Ended December 31, 2012 Sales 546,780 Cost of goods sold 367,854 Gross profit 178,926 Selling expenses 56,789 Administrative expenses 35,000 91,789 Income from operations 37,137 Interest expense 7,600 Income before income taxes 79,537 Income tax expense 23,000 Net income 56,537 Additional Information: 1. Dividends declared and paid were: $ 40,000 2. During the year equiment was sold for: 56,000 The equipment sold, in 2. above, cost: 65,000 4. The equipment sold, in 2. above, had a book value of: $ 25,000 5. Depreciation expense was: $ 62,222 6. Equipment was purchased for: $150,010