Question

1. Ziscosteel, a manufacturer of recyclable plastic bags, had the...

1. Ziscosteel, a manufacturer of recyclable plastic bags, had the following inventory balances at the beginning of 2012

INVENTORY CLASSIFICATION 1-Jan-18 31-Dec-18

Raw Material 40,000.00 50,000.00

Work In Progress 180,000.00 139,000.00

Finished Goods 150,000.00 165,000.00

During the year, the company purchased $250 000 of raw material and spent

$400 000 on direct labor. The manufacturing overhead costs were as follows:

indirect material 50,000.00

Indirect labor 25,000.00

Depreciation on plant equipment 13,000.00

Utilities 25,230.00

Other 30,000.00

Sales revenue for the year was $1 105 000.00. Selling and administrative expenses for the year amounted to 1100 00.00. The firm's tax rate is 40%.

a) Prepare a schedule for Prepare a schedule of cost of goods manufactured

b) Establish the cost of goods sold

c) Construct an income statement

2) Evaluate how both cost schedules and income statement will change if the following data changes:

i) Direct labor is 690000.00

ii) Utilities cost is 115000.00

3) Discuss how the management accountant assists the top management making decisions

4) Annex corporation's comparative balance sheets are presented below

Radman Corporation Balance Sheet

2018 2017

Cash 5,300.00 3,700.00

Accounts receivable 21,200.00 23,400.00

Inventory 9,000.00 7,000.00

Land 20,000.00 26,000.00

Buildings 70,000.00 70,000.00

Accumulated depreciation- Buildings 15,000.00 10,000.00

Total 110,500.00 120,100.00

Accounts payable 10,370.00 31,100.00

Common stock 75,000.00 69,000.00

Retained earnings 25,130.00 20,000.00

Total 110,500.00 120,100.00

The 2018 income statement included net sales of $120 000.00, cost of goods sold of $70 000.00 and net income of $14 000.00

Establish the following ratios for 2018:

i) Current ratio

iii) Acid- Test ratio

iv) Accounts receivables Turnover

v) Inventory turnover

vi) Profit margin

vii) Return on stockholders' equity

b) With each of the above ratios, advise the management on the possible business decisions.

5) Frederick company has the following data for the year ended May 2016

Factory utilities 15600

Depreciation on factory equipment 12650

Depreciation on delivery trucks 8800

indirect factory labor 48900

Indirect material 80800

Direct material used 137600

Factory manager's salary 13000

Direct labor 89100

Sales salary 46400

Property tax on buildings 2500

Repairs to office equipment 2300

factory repairs 2000

advertising 18000

office supplies 5640

Calculate the following:

a) Manufacturing overhead

b) Product costs

c) Period costs