Exercise 12-9A (Algo) Process cost system LO 12-2, 12-3 Finch Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions. 1. Issued common stock for $75,000. 2. Paid $32,000 cash to purchase raw materials used to make products. 3. Transferred $24,000 of raw materials to the production department. 4. Paid $27,000 cash for labor used to make products. 5. Pald $42,000 cash for overhead costs (assume actual and estimated overhead are the same). 6. Finished work on products that cost $82,000 to make. 7. Sold products that cost $69,000 to make for $90,500 cash. Required a. Prepare the December 31, Year 1, balance sheet. b. Prepare the December 31, Year 1, Income statement.
Exercise 12-9A (Algo) Process cost system LO 12-2, 12-3 Finch Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions. 1. Issued common stock for $75,000. 2. Paid $32,000 cash to purchase raw materials used to make products. 3. Transferred $24,000 of raw materials to the production department. 4. Paid $27,000 cash for labor used to make products. 5. Pald $42,000 cash for overhead costs (assume actual and estimated overhead are the same). 6. Finished work on products that cost $82,000 to make. 7. Sold products that cost $69,000 to make for $90,500 cash. Required a. Prepare the December 31, Year 1, balance sheet. b. Prepare the December 31, Year 1, Income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Help me
Transcribed Image Text:Exercise 12-9A (Algo) Process cost system LO 12-2, 12-3
Finch Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following
transactions.
1. Issued common stock for $75,000.
2. Paid $32,000 cash to purchase raw materials used to make products.
3. Transferred $24,000 of raw materials to the production department.
4. Paid $27,000 cash for labor used to make products.
5. Pald $42,000 cash for overhead costs (assume actual and estimated overhead are the same).
6. Finished work on products that cost $82,000 to make.
7. Sold products that cost $69,000 to make for $90,500 cash.
Required
a. Prepare the December 31, Year 1, balance sheet.
b. Prepare the December 31, Year 1, Income statement.
Complete this question by entering your answers in the tabs below.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education