Brock Company makes candy. During the most recent accounting period Brock paid $5,500 for raw materials, $6,500 for labor, and $7,000 for overhead costs that were incurred to make candy. Brock started and completed 19,200 units of candy of which 13,000 were sold. Based on this information the balance in the inventory account on Brock’s balance sheet would be Note: Do not round intermediate calculations. Multiple Choice $6,135. $6,200. $19,000. None of the above. Incorrect
Assume that all transactions except #6 and #10 are cash transactions.
1. Acquired $15,000 cash by issuing common stock. 2. Paid $2,000 for materials that were used to make products. All products started we
during the period.
3. Paid $1,200 salaries of selling and admin. employees.
4. Paid $3,000 wages to production workers.
5. Paid $2,800 for furniture used in selling and admin. offices.
6. Recognized
1, had a $400 estimated salvage value and a four year useful life.
7. Paid $4,500 for manufacturing equipment.
8. Recognized depreciation on the equipment purchased in Event 7. The equipment v
Jan. 1, had a $1,500 estimated salvage value and a three year useful life.
9. Sold inventory to customers for $7,500 cash.
10. The inventory in Event 9 cost $4,000 to make.
Brock Company makes candy. During the most recent accounting period Brock paid $5,500 for raw materials, $6,500 for labor, and $7,000 for overhead costs that were incurred to make candy. Brock started and completed 19,200 units of candy of which 13,000 were sold. Based on this information the balance in the inventory account on Brock’s balance sheet would be
Note: Do not round intermediate calculations.
Multiple Choice
$6,135.
$6,200.
$19,000.
None of the above.
Incorrect
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