Question
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started