Exercise 18-7 Balance sheet identification and preparation L.O. C4

 

Exercise 18-7 Balance sheet identification and preparation L.O. C4

[The following information applies to the questions displayed below.]

Current assets for two different companies at calendar year-end 2011 are listed here. One is a manufacturer, Roller Blades Mfg., and the other, Sunny Foods, is a grocery distribution company.
Account Company 1 Company 2
Cash $ 9,000 $ 7,000
Raw materials inventory 46,750
Merchandise inventory 49,750
Goods in process inventory 34,000
Finished goods inventory 54,000
Accounts receivable, net 59,000 81,000
Prepaid expenses 2,500 500

Section Break Difficulty: Hard
Exercise 18-7 Balance sheet identification and preparation L.O. C4 Learning Objective: 18-C4 Explain how balance sheets and income statements for manufacturing and merchandising companies differ.

1.

award:
1 out of
1.00 point

Exercise 18-7 Part 1.1

(1.1) Identify which set of numbers relates to the manufacturer.
Company 1
Company 2
Company 2, Roller Blades Mfg., is a manufacturing company with 3 inventory categories (raw materials, goods in process, and finished goods).

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Multiple Choice Difficulty: Hard
Exercise 18-7 Part 1.1 Learning Objective: 18-C4 Explain how balance sheets and income statements for manufacturing and merchandising companies differ.

2.

award:
1 out of
1.00 point

Exercise 18-7 Part 1.2

(1.2) Identify which set of numbers relates to the merchandiser.
Company 1
Company 2
Company 1, Sunny Foods, is a merchandising firm with only one inventory item, merchandise inventory.

eBook LinkView Hint #1

Multiple Choice Difficulty: Hard
Exercise 18-7 Part 1.2 Learning Objective: 18-C4 Explain how balance sheets and income statements for manufacturing and merchandising companies differ.

3.

award:
2 out of
2.00 points

Exercise 18-7 Part 2

(2) Prepare the current asset section for each company from this information. (Be sure to list the current assets in order of liquidity. Omit the “$” sign in your response.)
Company 1
Sunny Foods
Current Asset Section
December 31, 2011
Cash $ 9,000
Accounts receivable, net 59,000
Merchandise inventory 49,750
Prepaid expenses 2,500

Total current assets $ 120,250



Company 2
Roller Blades Mfg.
Current Asset Section
December 31, 2011
Cash $ 7,000
Accounts receivable, net 81,000
Raw materials inventory
Goods in process inventory
Finished goods inventory
Prepaid expenses 500

Total current assets $ 223,250



eBook LinkView Hint #1

Worksheet Difficulty: Hard
Exercise 18-7 Part 2 Learning Objective: 18-C4 Explain how balance sheets and income statements for manufacturing and merchandising companies differ.

4.

award:
2 out of
2.00 points

Exercise 18-8 Cost of goods sold computation L.O. P1

Century
Merchandising
New Homes
Manufacturing
Beginning inventory
Merchandise $ 263,000
Finished goods $ 526,000
Cost of purchases 500,000
Cost of goods manufactured 930,000
Ending inventory
Merchandise 163,000
Finished goods 157,000

Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet Difficulty: Medium
Exercise 18-8 Cost of goods sold computation L.O. P1 Learning Objective: 18-P1 Compute cost of goods sold for a manufacturer.
7.

award:
3 out of
3.00 points

Exercise 18-11 Manufacturing statement preparation L.O. P2

Given the following selected account balances of Randa Company.
Sales $ 1,459,000
Raw materials inventory, Dec. 31, 2010 42,000
Goods in process inventory, Dec. 31, 2010 56,300
Finished goods inventory, Dec. 31, 2010 61,100
Raw materials purchases 175,700
Direct labor 246,000
Factory computer supplies used 24,700
Indirect labor 55,000
Repairs—Factory equipment 7,250
Rent cost of factory building 50,000
Advertising expense 81,000
General and administrative expenses 140,000
Raw materials inventory, Dec. 31, 2011 49,900
Goods in process inventory, Dec. 31, 2011 40,000
Finished goods inventory, Dec. 31, 2011 65,300

Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

Exercise 18-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2

[The following information applies to the questions displayed below.]

Using the following data,
Canyon
Company
Rossings
Company
Beginning finished goods inventory $ 12,000 $ 14,500
Beginning goods in process inventory 16,500 19,500
Beginning raw materials inventory 13,500 10,000
Rental cost on factory equipment 29,000 23,000
Direct labor 22,000 42,000
Ending finished goods inventory 21,500 12,500
Ending goods in process inventory 27,000 21,000
Ending raw materials inventory 7,700 17,200
Factory utilities 10,000 10,000
Factory supplies used 10,000 9,100
General and administrative expenses 18,000 55,000
Indirect labor 3,250 9,660
Repairs—Factory equipment 6,780 3,500
Raw materials purchases 34,000 41,000
Sales salaries 57,000 47,000

Section Break Exercise 18-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2 Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.

5.

award:
2 out of
2.00 points

Exercise 18-9 Part 1

1. Compute the cost of goods manufactured for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.)

eBook Links (2)View Hint #1

Worksheet Difficulty: Medium Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.
Exercise 18-9 Part 1 Learning Objective: 18-P1 Compute cost of goods sold for a manufacturer.

6.

award:
0 out of
2.00 points

Exercise 18-9 Part 2

2. Compute cost of goods sold for both Canyon Company and Rossings Company. (Omit the “$” sign in your response.)

eBook Links (2)View Hint #1

Worksheet Difficulty: Medium Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.
Exercise 18-9 Part 2 Learning Objective: 18-P1 Compute cost of goods sold for a manufacturer.

Section Break Exercise 18-9 Cost of goods manufactured and cost of goods sold computation L.O. P1, P2 Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.
1.

Exercise 18-9 Part 2

2.

7.

award:
3 out of
3.00 points

Exercise 18-11 Manufacturing statement preparation L.O. P2

Given the following selected account balances of Randa Company.
Sales $ 1,459,000
Raw materials inventory, Dec. 31, 2010 42,000
Goods in process inventory, Dec. 31, 2010 56,300
Finished goods inventory, Dec. 31, 2010 61,100
Raw materials purchases 175,700
Direct labor 246,000
Factory computer supplies used 24,700
Indirect labor 55,000
Repairs—Factory equipment 7,250
Rent cost of factory building 50,000
Advertising expense 81,000
General and administrative expenses 140,000
Raw materials inventory, Dec. 31, 2011 49,900
Goods in process inventory, Dec. 31, 2011 40,000
Finished goods inventory, Dec. 31, 2011 65,300

Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet Difficulty: Hard
Exercise 18-11 Manufacturing statement preparation L.O. P2 Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.

8.

award:
2 out of
2.00 points

Exercise 18-12 Income statement preparation L.O. P2

Following are the selected account balances of Randa Company:
Sales $ 1,491,000
Raw materials inventory, Dec. 31, 2010 37,000
Goods in process inventory, Dec. 31, 2010 59,600
Finished goods inventory, Dec. 31, 2010 61,100
Raw materials purchases 172,200
Direct labor 232,000
Factory computer supplies used 19,100
Indirect labor 52,000
Repairs—Factory equipment 7,250
Rent cost of factory building 55,000
Advertising expense 94,000
General and administrative expenses 132,000
Raw materials inventory, Dec. 31, 2011 49,000
Goods in process inventory, Dec. 31, 2011 46,500
Finished goods inventory, Dec. 31, 2011 71,300

Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $538,650. (Input all amounts as positive values. Omit the “$” sign in your response.)

eBook LinkView Hint #1

Worksheet Difficulty: Hard
Exercise 18-12 Income statement preparation L.O. P2 Learning Objective: 18-P2 Prepare a manufacturing statement and explain its purpose and links to financial statements.

9.

award:
2 out of
2.00 points

Exercise 18-13 Cost flows in manufacturing L.O. C5

The following chart shows how costs flow through a business as a product is manufactured. Some boxes in the flowchart show cost amounts. Compute the cost amounts for the input boxes.

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