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Income Statement A (scroll down for Income Statement B): Question not attempted. Sample Company A Income Statement For the Year Ended December 31, 20Y8 1

Income Statement A (scroll down for Income Statement B):

Question not attempted.

Sample Company A

Income Statement

For the Year Ended December 31, 20Y8

1

Sales

$42,000.00

2

Beginning finished goods inventory

$5,250.00

3

Cost of goods manufactured

6,400.00

4

Cost of finished goods available for sale

$11,650.00

5

Ending finished goods inventory

(400.00)

6

Cost of goods sold

11,250.00

7

Gross profit

$30,750.00

8

Operating expenses:

9

Selling expenses

$6,400.00

10

Administrative expenses

5,250.00

11

Total operating expenses

11,650.00

12

Net income

$19,100.00

Income Statement B:

Question not attempted.

Sample Company B

Income Statement

For the Year Ended December 31, 20Y8

1

Sales

$42,000.00

2

Beginning inventory

$5,250.00

3

Net purchases

6,400.00

4

Inventory available for sale

$11,650.00

5

Ending inventory

(400.00)

6

Cost of goods sold

11,250.00

7

Gross profit

$30,750.00

8

Operating expenses:

9

Selling expenses

$6,400.00

10

Administrative expenses

5,250.00

11

Total operating expenses

11,650.00

12

Net income

$19,100.00

none

X

Balance Sheets

Balance Sheet C (scroll down for Balance Sheet D):

Question not attempted.

Sample Company C

Balance Sheet

December 31, 20Y8

1

Assets

2

Cash

$20,800.00

3

Accounts receivable (net)

10,000.00

4

Inventory

6,000.00

5

Supplies

2,100.00

6

Land

17,000.00

7

Total assets

$55,900.00

8

Liabilities

9

Accounts payable

$17,800.00

10

Stockholders Equity

11

Common stock

$19,000.00

12

Retained earnings

19,100.00

13

Total stockholders equity

38,100.00

14

Total liabilities and stockholders equity

$55,900.00

Balance Sheet D:

Question not attempted.

Sample Company D

Balance Sheet

December 31, 20Y8

1

Assets

2

Cash

$20,800.00

3

Accounts receivable (net)

10,000.00

4

Inventory:

5

Direct materials

$2,500.00

6

Work in process

1,500.00

7

Finished goods

2,000.00

8

Total inventory

6,000.00

9

Supplies

2,100.00

10

Land

17,000.00

11

Total assets

$55,900.00

12

Liabilities

13

Accounts payable

$17,800.00

14

Stockholders Equity

15

Common stock

$19,000.00

16

Retained earnings

19,100.00

17

Total stockholders equity

38,100.00

18

Total liabilities and stockholders equity

$55,900.00

none

X

Costs and Balances

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data hes 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 inventory

The cost of materials that have not yet entered into the manufacturing process.

$2,700
Materials inventory on Feb. 28 50% of materials inventory on Jan. 31
Direct materials purchased $12,000
Direct materials used 3 times the direct labor incurred
Total manufacturing costs incurred in period $28,000
Total manufacturing costs incurred in period 70% of Cost of Goods Manufactured
You are in Column Data for FebruaryTotal manufacturing costs incurred in period $8,000 less than Cost of Goods Sold

Account

Account Balances

Costs Incurred

Jan. 31

Feb. 28

Materials Inventory Direct Materials Used
Work in Process Inventory

The direct materials costs, the direct labor costs, and the applied factory overhead costs that have entered into the manufacturing process but are associated with products that have not been finished.

27,000 Direct Labor Incurred
Finished Goods Inventory

The direct materials costs, direct labor costs, and factory overhead costs of finished products that have not been sold.

16,000 Factory Overhead Incurred
You are in Column Account Jan. 31 You are in Column Account Balances Feb. 28 You are in Column Account Balances You are in Column Costs IncurredCost of Goods Sold You are in Column Costs Incurred

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