a)
Introduction: Cost of goods manufactured refers to the overall
To calculate: The cost of goods manufactured as on December 31, 2020.
b)
Introduction: An income statement is prepared by the business organizations to know how much amount of gross profit or net profit they earn during the year. An income statement's objective is to display a company's financial success over a specific time frame.
To prepare: The income statement through gross profit.
Introduction: The
To Present: The ending inventory in the balance sheet as on December 31, 2020.
Introduction: The balance sheet of an organization shows the financial situation as of a particular date. The balance sheet is used by the investors, and management to assess the financial position of the company. To state: The difference between the balance sheet and income statement of a merchandising company and manufacturing company.
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 19 Solutions
ACCT.PRINCIPLES-WILEYPLUS NEXTGEN
- Which of the following represents the components of the income statement for a merchandising business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Sales Revenue - Cost of Goods Manufactured = gross profit D. Service Revenue - Cost of Goods Purchased = gross profitarrow_forwardWhich of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profitarrow_forwardYou may recall from Principles I that “Cost of goods sold” for a retailer is figured as shown below: Beginning inventory+ Purchases= Cost of goods available for sale– Ending inventory= Cost of goods sold (A) How does the “Cost of Goods Sold” section of the income statement differ between merchandising and manufacturing companies and how is it calculated for manufacturing companies? (B) Inventory on the balance sheet is also different for a manufacturing company than for a retailer. What are the three types of inventory on a manufacturer’s balance sheet? After naming all three, select one and discuss it. Please type out so I can read correctly*arrow_forward
- Computing cost of goods sold and operating income, merchandising company Consider the following partially completed income statements for merchandising companies and compute the missing amounts:arrow_forward"In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period." This statement is (false). What is the correct statement with an explanation, please?arrow_forwardWhich of the following represents the components of the income statement for a merchandising business? a.Service Revenue – Operating Expenses = gross profit b.Sales Revenue – Cost of Goods Sold = gross profit c.Service Revenue – Cost of Goods Purchased = gross profit d.Sales Revenue – Cost of Goods Manufactured = gross profitarrow_forward
- Two categories of expenses for merchandising companies are Select one: a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. sales and cost of goods sold. d. cost of goods sold and operating expensesarrow_forwardThe following information is available for Robstown Corporation for 20Y8:Please see the attachement:Instructions1. Prepare the statement of cost of goods manufactured.2. Prepare the income statement.arrow_forwardOn the income statement of a merchandising company, interest income and interest expense are reported: Question 8 options: A) As part of cost of goods sold B) By offsetting interest income and interest expense and showing the excess as an operating revenue or expense C) By showing interest income as additional sales revenue and interest expense as an operating expense D) As separate items of other income and expense below the net operating income or lossarrow_forward
- (a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.arrow_forwardWhich of the following represents the components of the income statement for a service business? Select one: a. Service Revenue – Operating Expenses = operating income b. Sales Revenue – Cost of Goods Manufactured = gross profit c. Sales Revenue – Cost of Goods Sold = gross profit d. Service Revenue – Cost of Goods Purchased = gross profitarrow_forward5. Cost of goods sold A only appears on merchandising companies' income statements b. only appears on manufacturing companies' income statements. C. appears on both manufacturing and merchandising companies income statements. d. is caloulated exactly the same for merchandising and manufacturing companies.arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)