Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show the steps for each blank >Thanks! Finch Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common

Please show the steps for each blank >Thanks!

image text in transcribed

Finch Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Finch immediately purchased office furniture and manufacturing equipment costing $9,800 and $26,800, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,500 for wages to production personnel. Finally, the company paid $15,100 for raw materials that were used to make inventory. All inventory was started and completed during the year. Finch completed production on 4,800 units of product and sold 3,830 units at a price of $15 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. (Round your answer to the nearest dollar amount.) e. Determine the amount of retained earnings that would appear on the December 31, 2018, alanc (Round your answer to the nearest dollar amount.) f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.) a. b. C. Total product cost Average cost per unit Cost of goods sold Ending inventory Net income Retained earnings Total assets d. CD f

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risky Business Principles Of Auditing Property And Casualty Insurance

Authors: Seth A. Davis, CIA, CPA, CPCU, CFA, CISA

1st Edition

0894139711, 978-0894139710

More Books

Students also viewed these Accounting questions

Question

4. Does cultural aptitude impact ones emotional intelligence?

Answered: 1 week ago