Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. (5000) $ 24,985.0 3,758.0 2,676.0 2,510.0 2,266.0 2,232.0 681.0 2,180.0 2,170.0 2,115.0 2,011.0 46.0 41.0 16.1 14.2 13.1 10.2

Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. (5000) $ 24,985.0 3,758.0 2,676.0 2,510.0 2,266.0 2,232.0 681.0 2,180.0 2,170.0 2,115.0 2,011.0 46.0 41.0 16.1 14.2 13.1 10.2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Alwar Brothers is a small, family-owned business that produces animal feed for dairy farms. The administrative offices and manufacturing plant of Alwar share the same building. Financial records provided by the company for the most recent fiscal year show the following (all amounts in thousands of dollars): Sales revenue Direct materials purchases Administrative costs Utilities (Note A) Indirect factory labor Marketing costs Direct labor Depreciation (Note B) Property taxes (Note C) Factory supplies Factory supervision Finished goods inventory, December 31 Finished goods inventory, January 1 Work-in-process inventory, January 1 Work-in-process inventory, December 31 Direct materials inventory, December 31 Direct materials inventory, January 1 Notes: A. 80% of this amount is for the factory. B. 85% of this amount is for the factory. C. 60% of this amount is for the factory. Required: a. Prepare a cost of goods sold statement. b. Prepare an income statement. ($000) $ 8,985.0 2,158.0…
ABD Corporation operates sales, administrative, and printing activities from a facility in the South. It prints and sells a variety of products. The following selected costs relate to the firm's acivities and particularly to the factory's Printing Department. 1 Production paper used in Printing Department 2 Hourly wages of production personnel in Printing Department 3 Factory property taxes and insurance 4 Supplies used which changes with printing volume in Printing Department 5 Contract signed by Printing Department manager for an annual maintenance fee on special machinery 6 Equipment depreciation in Printing Department 7 Building depreciation 8 Sales commissions 9 Advertising contract costs for a special program 10 Annual computer staff; uses the same staff level all year - half for factory operations, including the Printing Department, and half for administrative work Required: Based on reasonable assumptions about ABD Corporation, classifiy each cost as: а. variable or fixed cost…
Metalcore Ltd is a metal and woodcutting manufacturer, selling products to the home construction market. Consider the following data for the year ended 31 December 2021. Sales revenues $95,000 Administrative expenses $3,500 Beginning work in process inventory $5,400 Indirect labour $6,300 Plant depreciation $3,500 Ending work in process inventory $6,608 Direct material issues $9,000 Ending finished goods inventory $5,400 Plant insurance $3,800 Direct material purchases $9,200 Direct labour $16,270 Beginning finished goods inventory $6,760 Other Manufacturing overheads $6,000 Material handling costs $5,400 Required: Prepare a statement of the cost of goods sold for Metalcore Ltd for the year ended 31 December 2021.
What was Albay's cost of goods sold? Albay Company incurred the following costs and expense during the current year: Raw material purchases Direct labor cost Indirect labor cost – factory Factory repairs and maintenance Taxes on factory building Depreciation – factory building Taxes on sales room and general offices Depreciation – sales equipment Advertising Sales salaries Office salaries Utilities (50% applicable to factory, 30% to salesroom and 20% to office) 4,000,000 1,500,000 800,000 200,000 100,000 300,000 150,000 50,000 400,000 500,000 700,000 1,000,000 Beginning 200,000 500,000 400,000 Ending 450,000 350,000 700,000 Raw Materials Work in process Finished goods
The following selected information was extracted from the 20x1 accounting records of Lone Oak Products: Required:1. Calculate Lone Oak’s manufacturing overhead for the year.2. Calculate Lone Oak’s cost of goods manufactured.3. Compute the company’s cost of goods sold.4. Determine net income for 20x1, assuming a 30% income tax rate.5. Determine the number of completed units manufactured during the year.6. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: indirect labor is $115,000 and other factory costs amount to $516,000.
The following data refers to Huron Corporation for the year 2005 Activities Amount Sales revenue Raw material inventory, 12/31/2004 Purchases of raw material in 2005 Raw material inventory, 12/31/2005 Direct labor cost incurred Selling & administrative expenses Indirect labor cost incurred Property tax on factory Depreciation on factory building Income tax expenses Indirect material used Depreciation on factory equipment Insurance on factory and equipment Utilities for factory Work in process inventory, 12/31/2004 Work-in-process inventory ,12/31/2005 Finished goods inventory, 12/31/2004 Finished goods inventory, 12/31/2005 Applied manufacturing overhead $ 2,105,000 89,000 731,000 59,000 474,000 269,000 150,000 90,000 125,000 25,000 45,000 60,000 40,000 70,000 - 0 - 40,000 35,000 40,000…
Melville Manufacturing produces metal components for automotive suppliers. Financial records for September show the following: Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory, September 1 Direct materials inventory, September 30 Direct materials purchased during the month Distribution costs Finished goods inventory, September 1 Finished goods inventory, September 30 Indirect manufacturing labor Insurance (on manufacturing plant) Legal fees Maintenance (on the manufacturing plant) Manufacturing plant utiities Marketing costs Other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, September 1 Work-in-process inventory, September 30 Manufacturing costs: Direct materials: 30 Required: a. Prepare a cost of goods manufactured and sold statement. b. Prepare an income statement. 2,643,000 1,160,000 1,768,000 4,710,500 1,087,200…
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two operating departments using different allocation bases. The following information is available for the current period: Office Expenses Salaries Total Allocation Basis Number of employees $ 40,000 Depreciation Advertising 26,000 60,000 Cost of goods sold Percentage of total sales Department Number of employees Drilling Grinding 1,800 2,700 Sales $ 352,000 528,000 Cost of goods sold $ 110,200 179,800 Total 4,500 $ 880,000 $ 290,000 The amount of the advertising cost that should be allocated to Grinding for the current period is:
The Anthony Company, a sole proprietorship, reports the following information pertaining to its operating activities: During the year, the company purchased $40,000 of direct materials and incurred $21,000 of direct labor costs. Total manufacturing overhead costs for the year amounted to $18,000. Selling and administrative expenses amounted to $60,000, and the company’s annual sales amounted to $250,000. Prepare Anthony’s schedule of the cost of finished goods manufactured. Prepare Anthony’s income statement (ignore income taxes).
Melville Manufacturing produces metal components for automotive suppliers. Financial records for September show the following: Administrative salaries Depreciation on the administrative building Depreciation on the manufacturing plant Direct labor Direct materials inventory, September 1 Direct materials inventory, September 30 Direct materials purchased during the month Distribution costs Finished goods inventory, September 1 Finished goods inventory, September 30 Indirect manufacturing labor Insurance (on manufacturing plant) Legal fees Maintenance (on the manufacturing plant) Manufacturing plant utiities Marketing costs Other manufacturing plant costs Sales revenue Taxes (on manufacturing plant and property) Work-in-process inventory, September 1 Work-in-process inventory, September 30 $ 2,643,000 1,160,000 1,768,000 4,710,500 1,087, 200 1,253,000 8,974,000 675,000 1,660,000 1,387,500 560,000 71,200 514,300 233,400 802,100 767,250 648,880 22,672,920 233,600 421, 250 414,700 Required:…
Brock Company makes candy. During the most recent accounting period Brock paid $4,750 for raw materials, $5,750 for labor, and $5,500 for overhead costs that were incurred to make candy. Brock started and completed 16,495 units of candy of which 11,500 were sold. Based on this information Brock would recognize which of the following amounts of expense on its income statement? (Do not round intermediate calculations.)
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 250,000 Office manager's salary 150,000 Wages of factory machine operators 110,000 Depreciation on manufacturing equipment 50,000 Insurance and taxes on selling and administrative offices 30,000 Direct materials purchased and used 170,000 Based on the above information, the amount of period costs shown on Steuben's income statement is: Multiple Choice $150,000. $180,000. $430,000. S 30,000.