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I'm having trouble with my managerial accounting homework and I can't figure out the problems. Please explain how you got these answers so that I
I'm having trouble with my managerial accounting homework and I can't figure out the problems. Please explain how you got these answers so that I can learn. I've figured out some of the answers already but there are some that I'm stuck on.
Stuart Manufacturing Company was started on January 1, 2018, when it acquired $89,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $32,000 and $40,000, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of six years. The company paid $12,000 for salaries of administrative personnel and $21,000 for wages to production personnel. Finally, the company paid $26,000 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 10,000 units of product and sold 8,000 units at a price of $9 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.) b. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.) c. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.) d. Determine the amount of net income that would appear on the 2018 income statement. e. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet. f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. a. Total product cost Average cost per unit b. Cost of goods sold c. Ending inventory d. Net income e. Retained earnings f. Total assets Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $51,000; Work in Process Inventory, $18,000; Finished Goods Inventory, $43,000; Common Stock, $583,000; and Retained Earnings, $189,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions. 1. Paid $23,000 of research and development costs. 2. Paid $47,000 for raw materials that will be used to make eBook readers. 3. Placed $83,000 of the raw materials cost into the process of manufacturing eBook readers. 4. Paid $60,000 for salaries of selling and administrative employees. 5. Paid $91,000 for wages of production workers. 6. Paid $90,000 to purchase equipment used in selling and administrative offices. 7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $10,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost - salvage) + useful life). Specifically, ($90,000 - $10,000) = 5 = $16,000. 8. Paid $165,000 to purchase manufacturing equipment. 9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $25,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost - salvage) = useful life]. Specifically, ($165,000 - $25,000) - 7 = $20,000. 10. Paid $45,000 for rent and utility costs on the manufacturing facility. 11. Paid $70,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost). 12. Completed and transferred eBook readers that had total cost of $240,000 from work in process inventory to finished goods. 13. Sold 1,000 eBook readers for $420,000. 14. It cost Antioch $220,000 to make the eBook readers sold in Event 13. ANTIOCH COMPANY Schedule of Cost of Goods Manufactured and Sold For the Year Ended December 31, 2018 Beginning raw materials Inventory $ 51,000 Purchases 47,000 Raw materials available 98,000 Ending raw materials inventory (15,000) Raw materials used 83,000 Labor 91,000 Overhead Total manufacturing costs 174,000 Beginning work in process inventory 18,000 Total work in process inventory 192,000 Ending work in process inventory (17,000) Cost of goods manufactured 175,000 Beginning finished goods inventory 43,000 Goods available 218,000 Ending finished goods inventory (63,000)| Cost of goods sold $ 155,000 ANTIOCH COMPANY Income Statement For the Year Ended December 31, 2018 Sales revenue Cost of goods sold Gross margin Selling and administrative expense Net income
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