Connect Managerial Accounting Chapter 1
Q1. 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.
|Raw materials inventory||-||34375|
|Work in process inventory||-||25000|
|Finished goods inventory||-||45000|
|Accounts receivable, net||65000||67000|
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
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.
|Raw materials inventory, December 31, 2016||$43,000|
|Add: Raw materials purchases||162,300|
|Raw materials available for use||205,300|
|Less: Raw materials inventory, December 31, 2017||45,200|
|Direct materials used||$160,100|
|Factory computer supplies used||23,000|
|Rent cost of factory building||50,000|
|Total factory overhead costs||131,250|
|Total manufacturing costs||529,350|
|Add: Work in process inventory, December 31, 2016||54,800|
|Total cost of work in process||584,150|
|Less: Work in process inventory, December 31, 2017||45,100|
|Cost of goods manufactured||539,050|
Q4. Use the following information for the Exercises below.
The following selected account balances are provided for Delray Mfg.
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
|Cost of good sold|
|Finished goods inventory, December 31 2016||$60,800|
|Cost of goods manufactured||554,450|
|Cost of goods available for sale||615,250|
|Less: Finished goods inventory, December 31, 2017||74,500|
|Cost of goods sold||540,750|
|General and administrative expenses||138,000|
|Total operating expenses||227,000|