Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rundle Manufacturing Company was started on January 1, 2018, when It acquired $76,000 cash by Issuing common stock. Rundle Immediately purchased office furniture and manufacturing

image text in transcribed
Rundle Manufacturing Company was started on January 1, 2018, when It acquired $76,000 cash by Issuing common stock. Rundle Immediately purchased office furniture and manufacturing equipment costing $7,000 and $33,600, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,200 salvage value and an expected useful life of four years. The company paid $11,200 for salaries of administrative personnel and $15,300 for wages to production personnel. Finally, the company paid $13,550 for raw materials that were used to make Inventory. All Inventory was started and completed during the year. Rundle completed production on 4,500 units of product and sold 3.500 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 e. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet # Total product cost Average cost per unit Cost of good sold Error

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

Independent Review For Banks The Complete BSA AML Audit Workbook

Authors: Howard Steiner, Stephen L. Marini

1st Edition

0615237908, 978-0615237909

More Books

Students also viewed these Accounting questions

Question

1. Describe the factors that lead to productive conflict

Answered: 1 week ago