Consider the following information for Fair Wind Yachts Inc., a manufacturer of sailboat rigging, blocks, and cordage. $ 159,500 78,800 329,500 51,650 25,500 32,250 457,500 550,000 288,000 56,900 AC²000 46,800 37,700 25,800 40,750 Advertising expenses Depreciation expense-administrative office Depreciation expense-plant and equipment Depreciation expense-delivery trucks Materials inventory, beginning Make Materials inventory, ending Materia Direct Direct Direct parece Indirect labor Lawy materials purchases labor Finished goods inventory, beginning Finished goods inventory, ending Insurance on plant ansurance neat and Heat and light for plant Repairs on plant building Supervisor's salary-plant Supplies-plant Supplies-administrative office Work-in-process inventory, beginning Work-in-process inventory, ending Sales representatives' salaries Sales revenue 100, 850 133,900 133 900 80,850 35,750 42,800 329,750 3,082,000 Required: Prepare a statement of cost of goods manufactured and an income statement for Fair Wind Yachts for the year ended December 31.

Consider the following information for Fair Wind Yachts Inc., a manufacturer of sailboat rigging, blocks, and cordage. $ 159,500 78,800 329,500 51,650 25,500 32,250 457,500 550,000 288,000 56,900 AC²000 46,800 37,700 25,800 40,750 Advertising expenses Depreciation expense-administrative office Depreciation expense-plant and equipment Depreciation expense-delivery trucks Materials inventory, beginning Make Materials inventory, ending Materia Direct Direct Direct parece Indirect labor Lawy materials purchases labor Finished goods inventory, beginning Finished goods inventory, ending Insurance on plant ansurance neat and Heat and light for plant Repairs on plant building Supervisor's salary-plant Supplies-plant Supplies-administrative office Work-in-process inventory, beginning Work-in-process inventory, ending Sales representatives' salaries Sales revenue 100, 850 133,900 133 900 80,850 35,750 42,800 329,750 3,082,000 Required: Prepare a statement of cost of goods manufactured and an income statement for Fair Wind Yachts for the year ended December 31.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

! Required information [The following information applies to the questions displayed below.] At the beginning of the year, Almond Factory bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,400 940 1,020 790 Prepare the journal entry to record year 2 straight-line depreciation expense for Machine A, assuming an estimated life of 4 years and $1,000 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
As a result of FASB Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed," most software production costs are likely to be a. expensed as R&D costsb. allocated to inventory and expensed to cost of goods sold when the software is soldc. capitalized and amortized over a 40-year periodd. capitalized and amortized over a relatively short period, such as five years
A company's research department incurred $1,000,000 in material, labor, and overhead costs to construct a prototype of a new product and $100,000 to test and modify the prototype. Which of the following statements correctly describes the accounting treatment of prototype costs incurred by the company? 1. Capitalize $1,100,000 and amortize it over the expected sales life of the new product 2. Capitalize $1,100,000 and amortize it over the life of the prototype. 3. Capitalize $1,000,000 and amortize it over the life of the prototype and expense $100,000 as incurred. 4. Expense $1,100,000 as incurred.
! Required information [The following information applies to the questions displayed below.] At the beginning of the year, Almond Factory bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,400 940 1,020 790 7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $26,800, an estimated life of 10 years, and $1,400 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A. Record the year 2 depreciation expense for Machine C.
show full solution. Compute for the unit cost of goods manufactured
1 account treatment opotiom: capitalized/ depreciated or expensed
(a) Niasha Stores recently imported an item of plant from Grenadines Plants Ltd. The following information has been made available with regards to the purchase: Details $ Basic list price 3,000,000 Other costs: Transportation and handling 100,000 Pre-production testing 200,000 Holding structure for plant 350,000 Electrical inputs for plant 120,000 Own labour costs 250,000 Estimated maintenance costs for 5 years 300,000 The plant is expected to be useful for 8 years. At the end of this time, it will cost $180,000 to dismantle the plant and $140,000 to restore the site to its original state and use. Trade discount applicable to the purchase of the plant was 15% on the list price. Niasha Stores had made an error in purchasing electrical inputs amounting to $20,000. This cost was included in the above figure. In order to get the plant into the country Niasha Stores was charged 20% import duties on the basic list price. Niasha…
B. The following information is extracted from Jat Sdn Bhd’s records; Depreciation of buildings usd45,000 Store Rental usd30,000 Value of buildings 450,000 Jat has two (2) production departments, Department A and Department B. The following related information is also provided by Jat: Department A Department B Floor area (square meters) 8000 11000 Number of employees 56 53 You are required to calculate the apportionment of the overhead cost of depreciation of buildings based on floor area for: i) Department A ii) department B
Measuring asset cost, units-of-production depreciation, and asset trade Wimot Trucking Corporation uses the units-of-production depreciation method because units-of-production best measures wear and tear on the trucks. Consider these facts about one Mack truck in the company’s fleet. When acquired in 2015, the rig cost $360,000 and was expected to remain in service for 10 years or 1,000,000 miles. The estimated residual value was $90,000. The truck was driven 80,000 miles in 2015,120,000 miles in 2016, and 160,000 miles in 2017. After 44,000 miles, on March 15, 2018, the company traded in the Mack truck for a less expensive Freightliner. Wimot also paid cash of $20,000. The fair market value of the Mack truck was equal to its net book value on the date of the trade. Requirements Record the journal entry for depreciation expense in 2018. Determine Wimot’s cost of the new truck. Record the journal entry for the exchange of assets on March 15, 2018. Assume the exchange had commercial…
Each of the following cost items pertains to one of thesecompanies: General Electric(a manufacturing-sector company), Safeway (a merchandising-sector company),and Google (a service-sector company):a. Perrier mineral water purchased by Safeway for sale to its customersb. Electricity used to provide lighting for assembly-line workers at a General Electricrefrigerator assembly plantc. Depreciation on Google’s computer equipment used to update directories of Websitesd. Electricity used to provide lighting for Safeway’s store aislese. Depreciation on General Electric’s computer equipment used for quality testing ofrefrigerator components during the assembly processf. Salaries of Safeway’s marketing personnel planning local-newspaper advertisingcampaignsg. Perrier mineral water purchased by Google for consumption by its softwareengineersh. Salaries of Google’s marketing personnel selling banner advertisingRequired:1. Distinguish between manufacturing-, merchandising-, and…
Dog
Required information [The following information applies to the questions displayed below.) At the beginning of the year, Cruz & Turner Corporation bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began $10,700 970 1,110 850 Required: 1. Compute the amount to be capitalized for Machine A Total cost U