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 | ||||||
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| 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). |
| 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. |
| 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 |
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| Cash | $ 9,000 |
| Accounts receivable, net | 59,000 |
| Merchandise inventory | 49,750 |
| Prepaid expenses | 2,500 |
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| Total current assets | $ 120,250 |
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| Company 2 Roller Blades Mfg. Current Asset Section December 31, 2011 |
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| Cash | $ 7,000 |
| Accounts receivable, net | 81,000 |
| Raw materials inventory | |
| Goods in process inventory | |
| Finished goods inventory | |
| Prepaid expenses | 500 |
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| Total current assets | $ 223,250 |
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| 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 | ||||||||
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| Compute cost of goods sold for each of these two companies for the year ended December 31, 2011. (Omit the “$” sign in your response.) |
| 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: Exercise 18-11 Manufacturing statement preparation L.O. P2
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.]
5. award: Exercise 18-9 Part 1
6. award: Exercise 18-9 Part 2
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| 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 | |
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| Prepare its manufacturing statement for the year ended on December 31, 2011. (Input all amounts as positive values. Omit the “$” sign in your response.) |
| 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 | |
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| 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.) |
| 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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