5. The following information is available for Riqio Manufacturing Company. January 1, 2020 2020 December 31,2020 $21,000 Raw materials inventory Work in process inventory $30,000 18,500 17,200 Finished goods inventory 27,000 31,000 Materials purchased $170,000 Direct labor $200,000 Manufacturing overhead $180,000 Sales 900,000 Required: (a) Show the presentation of the ending inventories on the December 31, 2020 balance sheet. (b) How would the Balance sheet of a merchandising company be different from Riqqio's financial statements?

5. The following information is available for Riqio Manufacturing Company. January 1, 2020 2020 December 31,2020 $21,000 Raw materials inventory Work in process inventory $30,000 18,500 17,200 Finished goods inventory 27,000 31,000 Materials purchased $170,000 Direct labor $200,000 Manufacturing overhead $180,000 Sales 900,000 Required: (a) Show the presentation of the ending inventories on the December 31, 2020 balance sheet. (b) How would the Balance sheet of a merchandising company be different from Riqqio's financial statements?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.

Question

5. The following information is available for Riqio Manufacturing
Company.
January 1, 2020 2020 December 31,2020
Raw materials inventory
Work in process inventory
$21,000
$30,000
18,500
17,200
Finished goods inventory
27,000
31,000
Materials purchased
$170,000
Direct labor
$200,000
Manufacturing overhead
$180,000
Sales
900,000
Required:
(a) Show the presentation of the ending inventories on the
December 31, 2020 balance sheet.
(b) How would the Balance sheet of a merchandising company be
different from Riqqio's financial statements?

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