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

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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

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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