Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 1, Problem 9E
Financial statements of a manufacturing firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
- a. Purchased $250,000 of materials.
- b. Used $180,000 of direct materials in production.
- c. Incurred $450,000 of direct labor wages.
- d. Incurred $180,000 of factory overhead.
- e. Transferred $760,000 of work in process to finished goods.
- f. Sold goods for $1,200,000.
- g. Sold goods with a cost of $675,000
- h. Incurred $215,000 of selling expense
- i. Incurred $125,000 of administrative expense
Using the information given, complete the following:
- a. Prepare the January income statement for Sorensen Manufacturing Company.
- b. Determine the inventory balances at the end of the first month of operations.
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Financial statements of a manufacturing firmThe following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:a. Purchased $250,000 of materials.b. Used $180,000 of direct materials in production.c. Incurred $450,000 of direct labor wages.d. Incurred $180,000 of factory overhead.e. Transferred $760,000 of work in process to finished goods.f. Sold goods for $1,200,000.g. Sold goods with a cost of $675,000h. Incurred $215,000 of selling expensei. Incurred $125,000 of administrative expenseUsing the information given, complete the following:a. Prepare the January income statement for Sorensen Manufacturing Company.b. Determine the inventory balances at the end of the first month of operations.
Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
Purchased $50,200 of materials.
Used $38,700 of direct materials in production.
Incurred $57,700 of direct labor wages.
Incurred $81,300 of factory overhead.
Transferred $135,000 of work in process to finished goods.
Sold goods for $241,500.
Sold goods with a cost of $107,400.
Incurred $61,700 of selling expense.
Incurred $27,100 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
$fill in the blank 399ba5fda004077_2
fill in the blank 399ba5fda004077_4
$fill in the blank 399ba5fda004077_6
Operating expenses:
$fill in the blank 399ba5fda004077_8
fill in the…
Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
Purchased $250,000 of materials.
Used $180,000 of direct materials in production.
Incurred $450,000 of direct labor wages.
Incurred $180,000 of factory overhead.
Transferred $760,000 of work in process to finished goods.
Sold goods for $1,200,000.
Sold goods with a cost of $675,000.
Incurred $215,000 of selling expense.
Incurred $125,000 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
$
$
Operating expenses:
$
Total operating expenses
$
b. Determine the inventory balances at the end of the first month of operations.…
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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