Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the data from Problem 18-2A and the following additional inventory information for Leone Compauny. complete the requirements helow. Assume income ta expense is $23,.725

image text in transcribed
Using the data from Problem 18-2A and the following additional inventory information for Leone Compauny. complete the requirements helow. Assume income ta expense is $23,.725 for the year. Inventories 1, 2016.$166,850 .. 182,000 15,700 19,380 Work in process, December 31, 2016 . Finished goods, December 31, 2017.136,490 Required 1. Prepare the company's 2017 schedule of cost of goods manufactured. 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Analysis Component 3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days' sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days' sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place. Using the data from Problem 18-2A and the following additional inventory information for Leone Compauny. complete the requirements helow. Assume income ta expense is $23,.725 for the year. Inventories 1, 2016.$166,850 .. 182,000 15,700 19,380 Work in process, December 31, 2016 . Finished goods, December 31, 2017.136,490 Required 1. Prepare the company's 2017 schedule of cost of goods manufactured. 2. Prepare the company's 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Analysis Component 3. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days' sales in inventory, defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days' sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place

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_2

Step: 3

blur-text-image_3

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

English For Accounting And Auditing Students Book

Authors: Dejan Arsenovski

1st Edition

869212253X, 978-8692122538

More Books

Students also viewed these Accounting questions

Question

2. How should this be dealt with by the organisation?

Answered: 1 week ago

Question

explain what is meant by the term fair dismissal

Answered: 1 week ago