Connect Managerial Accounting Chapter 1

Connect Managerial Accounting Chapter 1

accounting assignment helpQ1. Current assets for two different companies at fiscal year-end 2017 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company.

AccountCompany1Company2
Cash$8000$6000
Raw materials inventory-34375
Merchandise inventory37375-
Work in process inventory-25000
Finished goods inventory-45000
Accounts receivable, net6500067000
Prepaid expenses4500900

Required:
1. Identify which set of numbers relates to the manufacturer and which to the merchandiser.

  • Which of these company is manufacturer. Company 2
  • Which of these company is a merchandiser. Company 1

2. Prepare the current asset section for each company from this information.

Company 1 Sunrise Foods Balance Sheet – Current Asset Section December 31 2017

  • Cash – $8,000
  • Merchandise Inventory – 37,375
  • Accounts Receivable – 65,000
  • Prepaid Expenses – 4,500
  • Total Current Assets – $114,875

Company 2 Rayzer Skis Mfg. Balance Sheet – Current Asset Section December 31 2017

  • Cash – $6,000
  • Raw Materials Inventory – 34,375
  • Work in Process Inventory – 25,000
  • Finished Goods Inventory – 45,000
  • Accounts Receivable – 67,000
  • Prepaid Expenses – 900

Q2. Exercise 1-11 Cost of goods sold computation LO P1

cost of goods sold computation

Compute cost of goods sold for each of these two companies for the year ended December 31, 2017.

Unimart Partial Income Statement For Year Ended December 31, 2017

  • Cost of goods sold:
  • Merchandise Inventory, December 31, 2016 – $238,000
  • Add: Merchandise Purchases – 480,000
  • Goods available for sale – 718,000
  • Less: Merchandise Inventory, December 31, 2017 – 138,000
  • Cost of goods sold – $580,000

Precision Manufacturing Partial Income Statement For Year Ended December 31, 2017

  • Cost of goods sold:
  • Finished Goods Inventory, December 31, 2016 – $476,000
  • Add: Cost of goods manufactured – 800,000
  • Goods available for sale – 1,276,000
  • Less: Finished Goods Inventory, December 31, 2017 – 132,000
  • Cost of goods sold – $1,144,000

Q3. Use the following information for the Exercises below.

The following selected account balances are provided for Delray Mfg. Exercise 1-13 Preparation of schedule of cost of goods manufactured LO P2. Prepare its schedule of cost of goods manufactured for the year ended December 31, 2017.

Direct Materials  
Raw materials inventory, December 31, 2016$43,000
Add: Raw materials purchases162,300
Raw materials available for use205,300
Less: Raw materials inventory, December 31, 201745,200
Direct materials used$160,100
Direct Labor238,000
Factory Overhead
Factory computer supplies used23,000
Indirect Labor53,000
Repairs-Factory equipment5,250
Rent cost of factory building50,000
Total factory overhead costs131,250
Total manufacturing costs529,350
Add: Work in process inventory, December 31, 201654,800
Total cost of work in process584,150
Less: Work in process inventory, December 31, 201745,100
Cost of goods manufactured539,050

Q4. Use the following information for the Exercises below.

The following selected account balances are provided for Delray Mfg.

Income statement preparation

Exercise 1-14 Income statement preparation LO P2. Prepare an income statement for Delray Mfg. (a manufacturer).

Delray Mfg. Income Statement For Year Ended December 31, 2017

Sales$1,006,000
Cost of good sold
Finished goods inventory, December 31 2016$60,800
Cost of goods manufactured554,450
Cost of goods available for sale615,250
Less: Finished goods inventory, December 31, 201774,500
Cost of goods sold540,750
Gross profit465,250
Operating expenses
Advertising expense89,000
General and administrative expenses138,000
Total operating expenses227,000
Operating Income$238,250