SURVEY OF ACCOUNTING 360DAY CONNECT CAR
5th Edition
ISBN: 9781260591811
Author: Edmonds
Publisher: MCG
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Textbook Question
Chapter 10, Problem 24P
Problem 1-22A Product versus SG&A costs
The following transactions pertain to 2018, the first-year operations of Gibson Company. All inventory was started and completed during 2018. Assume that all transactions are cash transactions.
1. Acquired $12,000 cash by issuing common stock.
2. Paid $4,700 for materials used to produce inventory.
3. Paid $2,400 to production workers.
4. Paid $900 rental fee for production equipment.
5. Paid $350 to administrative employees.
6. Paid $400 rental fee for administrative office equipment.
7. Produced 400 units of inventory of which 360 units were sold at a price of $25 each.
Required
Prepare an income statement and a balance sheet in accordance with GAAP.
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Question 2: - The following is the trial balance of Falcon Manufacturing Company as at March 31, 2018
Particular
Rs.
Particular
Rs.
Cash at Bank
38, 100
Indirect Labor
18, 400
Acc Receivables (net)
9, 420
Sales
496, 000
Dir Material Inv – April 1
30, 000
Sales Returns
16, 000
Work-in-process April 1
35, 725
Purchases of Material
48, 000
Fin Goods Inv April 1
19, 430
Carriage on Purchases
5, 000
Machine – Factory
600, 000
Purchases Returns
3, 000
Salary Expense
40, 500
Purchases Discount
1, 500
Machine – Office
200, 000
Direct Labor
86, 450
Acc Dep – Office machine
143, 700
Electricity
200, 000
Salary Payable
15, 500
Rent
75, 000
Indirect Material
25, 600
Depreciation (machine)
45, 000
The inventories as at March 31, 2018 are as…
Question 2: - The following is the trial balance of Falcon Manufacturing Company as at March 31, 2018
Particular
Rs.
Particular
Rs.
Cash at Bank
38, 100
Indirect Labor
18, 400
Acc Receivables (net)
9, 420
Sales
496, 000
Dir Material Inv – April 1
30, 000
Sales Returns
16, 000
Work-in-process April 1
35, 725
Purchases of Material
48, 000
Fin Goods Inv April 1
19, 430
Carriage on Purchases
5, 000
Machine – Factory
600, 000
Purchases Returns
3, 000
Salary Expense
40, 500
Purchases Discount
1, 500
Machine – Office
200, 000
Direct Labor
86, 450
Acc Dep – Office machine
143, 700
Electricity
200, 000
Salary Payable
15, 500
Rent
75, 000
Indirect Material
25, 600
Depreciation (machine)
45, 000
The inventories as at March 31, 2018 are as…
Exercise 3-2 (Static) Prepare T-Accounts [LO3-2, LO3-4]
Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the transactions that it recorded during a recent month is shown below.
$94,000 in raw materials were purchased for cash.
$89,000 in raw materials were used in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $132,000 were incurred and paid. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.
Additional manufacturing overhead costs of $143,000 were incurred and paid.
Manufacturing overhead of $152,000 was applied to production using the company’s predetermined overhead rate.
All of the jobs in process at the end of the month were completed.
All of the completed jobs were shipped to customers.
Any underapplied or overapplied overhead for the period was closed to Cost of Goods Sold.
Required:
1. Post the above transactions…
Chapter 10 Solutions
SURVEY OF ACCOUNTING 360DAY CONNECT CAR
Ch. 10 - 1. What are some differences between financial and...Ch. 10 - 2. What does the value-added principle mean as it...Ch. 10 - 4. How does product costing used in financial...Ch. 10 - 5. What does the statement costs can be assets or...Ch. 10 - 6. Why are the salaries of production workers...Ch. 10 - 7. How do product costs affect the financial...Ch. 10 - 8. What is an indirect cost? Provide examples of...Ch. 10 - 9. How does a product cost differ from a selling,...Ch. 10 - 10. Why is cost classification important to...Ch. 10 - 11. What is cost allocation? Give an example of a...
Ch. 10 - 13. What are some of the common ethical conflicts...Ch. 10 - 14. What costs should be considered in determining...Ch. 10 - 15. What is a just-in-time (JIT) inventory system?...Ch. 10 - Prob. 14QCh. 10 - Prob. 15QCh. 10 - Prob. 16QCh. 10 - Prob. 17QCh. 10 - Prob. 18QCh. 10 - Prob. 19QCh. 10 - Prob. 1ECh. 10 - Exercise 1-2A Identifying product versus selling,...Ch. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Exercise 1-6A Identifying product versus SGA costs...Ch. 10 - LO 1-3 Exercise 1-7A Recording product versus SGA...Ch. 10 - Prob. 8ECh. 10 - LO 1-4 Exercise 1-9A Upstream, midstream, and...Ch. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Cost of goods manufactured and sold The following...Ch. 10 - Prob. 15ECh. 10 - Exercise 1-14A Using JIT to minimize waste and...Ch. 10 - Prob. 17ECh. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - Problem 1-19A Characteristics of financial versus...Ch. 10 - Prob. 22PCh. 10 - Problem 1-21A Effect of product versus period...Ch. 10 - Problem 1-22A Product versus SGA costs The...Ch. 10 - Prob. 25PCh. 10 - Prob. 26PCh. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31PCh. 10 - Prob. 32PCh. 10 - Prob. 1ATCCh. 10 - Prob. 2ATCCh. 10 - Prob. 3ATCCh. 10 - Prob. 4ATCCh. 10 - Ethical Dilemma Product cost versus selling and...
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- Costing inventory Golden Eagle Company begun operations in 2016 by selling a single product. Data on purchases and sales for the year were as follows: Sales: April 16,000 units May 16,000 June 20,000 July 24,000 August 28,000 September 28.000 October 18,000 November 10,000 December 8,000 Total units 168,000 Total sales 10,000,000 On January 4, 2017, the president of the company, Connie Kilmer, asked for your advice on costing the 32,000-unit physical inventory that was taken on December 51, 2016. Moreover, since the firm plans to expand its product line, she asked for your advice on the use of a perpetual inventory system in the future. 1. Determine the cost of the December 31. 2016, inventory under the periodic system, using the (a) first-m, first-out method, (b) last-in, first-out method, and (c) weighted average cost method. 2. Determine the gross profit for the year under each of the three methods in (1). 3. a. Explain varying viewpoints why each of the three inventory costing methods may best reflect the results of operations for 2016. b. Which of the three inventory costing methods may best reflect the replacement cost of the inventory on the balance sheet as of December 31, 2016:' c. Which inventory costing method would you choose to use for income tax purposes? Why? d. Discuss the advantages and disadvantages of using a perpetual inventory system. From the data presented in this case, is there any indication of the adequacy of inventory' levels during the year?arrow_forwardCost of goods sold and related items The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018: Estimated returns of current year sales 11,600 Inventory, May 1, 2017 380,000 Inventory, April 30,2018 415,000 Purchases 3,800,000 Purchases returns and allowances 150,000 Purchases discounts 80,000 Sales 5,850,000 Freight in 16,600 A. Prepare the cost of goods sold section of the income statement for the year ended April 30, 2018, using the periodic inventory system. B. Determine the gross profit to be reported on the income statement for the year ended April 30, 2018. C. Would gross profit he different if the perpetual inventory system was used instead of the periodic inventory system?arrow_forwardMultiple step income statement and balance sheet The following selected accounts anti their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash 92,000 Accounts Receivable 450,000 Merchandise Inventory 370,000 Estimated Returns Inventory 5,000 Office Supplies 10,000 Prepaid Insurance 12,000 Office Equipment 220,000 Accumulated DepreciationOffice Equipment 58,000 Store Equipment 650,000 Accumulated DepreciationStore Equipment 87,500 Accounts Payable 38,500 Customer Refunds Payable 10,000 Salaries Payable 4,000 Note Payable (final payment due 2032) 140,000 Gerri Faber. Capital 431,000 Gerri Faber, Drawing 300,000 Sales 8,925,00 Cost of Merchandise Sold 5,620,00 Sales Salaries Expense 850,000 Advertising Expense 420,000 Depreciation Expense Store Equipment 33,000 Miscellaneous Selling Expense 18,000 Office Salaries Expense 540,000 Rent Expense 48,000 Insurance Expense 24,000 Depredation ExpenseOffice Equipment 10,000 Office Supplies Expense 4,000 Miscellaneous Administrative Exp. 6,000 Interest Expense 12,000 Instructions 1.Prepare a multiple-step income statement. 2.Prepare a statement of owners equity. 3.Prepare a balance sheet, assuming that the current portion of the note payable is 7,000. 4.Briefly explain how multiple-step and single-step income statements differ.arrow_forward
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