Question
Requirements (Part one): Prepare an income statement for Petunia's Posies, a merchandiser, for the year ended December 31, 2016. Part One: In 2015, Petunia Conway
Requirements (Part one):Prepare an income statement for Petunia's Posies, a merchandiser, for the year ended December 31, 2016.
Part One: In 2015, Petunia Conway opened Petunia's Posies, a small retail shop selling floral arrangements
On December 31, 2016, her accounting records show the following:
| Sales revenue. . . . . . . . . . . . . . . . | $51,000 |
| Utilities for shop. . . . . . . . . . . . . . | $1,200 |
| Inventory on December 31, 2016. . | $9,900 |
| Inventory on January 1, 2016. . . . . | $12,600 |
| Rent for shop. . . . . . . . . . . . . . . . | $3,200 |
| Sales commisions. . . . . . . . . . . . . | $4,300 |
| Purchases of merchandise. . . . . . | $38,500 |
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Requirements (Part two):
| 1. | Calculate the Cost of Goods Manufactured for Floral Mart Manufacturing for the year ended December31,2017. |
| 2. | Prepare an income statement for Floral Mart Manufacturing for the year ended December 31,2017. |
| 3. | How does the format of the income statement for Floral Mart Manufacturing differ from the income statement ofPetunia's Posies? |
Part Two: Petunia's Posies was so successful that Petunia decided to manufacture her own brand of floral supplies: Floral Mart Manufacturing.
At the end of December 2017, her accounting records show thefollowing:
| Utilities for plant. . . . . . . . . . . . . . . . . . . . . . . . . | $5,100 |
| Delivery expense. . . . . . . . . . . . . . . . . . . . . . . . | $4,500 |
| Sales salaries expense. . . . . . . . . . . . . . . . . . . . | $5,000 |
| Plant janitorial services. . . . . . . . . . . . . . . . . . | $1,750 |
| Work in process inventory, December 31, 2017. . . | $5,500 |
| Finished goods inventory, December 31, 2016. . . | $0 |
| Finished goods inventory, December 31, 2017. . . | $2,000 |
| Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . | $103,000 |
| Customer service hotline expense. . . . . . . . . . . | $1,800 |
| Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . | $27,000 |
| Direct material purchases. . . . . . . . . . . . . . . . . . | $39,000 |
| Rent on manufacturing plant. . . . . . . . . . . . . . . . | $8,200 |
| Raw materials inventory, December 31, 2016. . . . | $17,000 |
| Raw materials inventory, December 31, 2017. . . . | $8,500 |
| Work in process inventory, December 31, 2016. . . | $0 |
Part Three: Show the ending inventories that would appear on these balance sheets:
| 1. | Petunia's Posies at December 31, 2016 |
| 2. | Floral Mart Manufacturing at December 31, |
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Software Reviews And Audits A How To Guide For Project Staff
Authors: Dr David Tuffley
1st Edition
1461130468, 978-1461130468
