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Perez Manufacturing Company was started on January 1 , Year 1 , when it acquired $ 8 2 , 0 0 0 cash by issuing
Perez Manufacturing Company was started on January Year when it acquired $ cash by issuing common stock. Perez
immediately purchased office furniture and manufacturing equipment costing $ and $ respectively. The office
furniture had an eightyear useful life and a zero salvage value. The manufacturing equipment had a $ salvage value and
an expected useful life of four years. The company paid $ for salaries of administrative personnel and $ for wages to
production personnel. Finally, the company paid $ for raw materials that were used to make inventory. All inventory was
started and completed during the year. Perez completed production on units of product and sold units at a price of
$ each in Year 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 Year
Note: Round "Average cost per unit" to decimal places.
b Determine the amount of cost of goods sold that would appear on the Year income statement.
Note: Do not round intermediate calculations.
c Determine the amount of the ending inventory balance that would appear on the December Year balance sheet.
Note: Do not round intermediate calculations.
d Determine the amount of net income that would appear on the Year income statement.
Note: Do not round intermediate calculations.
e Determine the amount of retained earnings that would appear on the December Year balance sheet.
Note: Do not round intermediate calculations.
f Determine the amount of total assets that would appear on the December Year balance sheet.
Note: Do not round intermediate calculations.
a Total product cost
a Average cost per unit
b Cost of good sold
c Ending inventory
d Net income
e Retained earnings
f Total assets
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