EXERCISE 6. Financial Statements - normal. Refer to Exercise 5. Assuming normal cost system and the company applies manufacturing overhead cost at 170% of direct labor cost. (105) How much is the manufacturing overhead cost? Solution is required. Upload the solution.
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- Sales Revenue Cost of Goods Manufactured Beginning Finished Goods Inventory Ending Finished Goods Inventory Selling Expenses Administrative Expenses What is the gross profit? O A. $14,300 OB. $32,800 OC. $23,800 OD. $20,200 $53,000 22,000 1,800 3,600 15,000 3,500Interest Revenue Merchandise Inventory Notes Payable, long-term Salaries Payable Net Sales Revenue Rent Expense (Selling) Salaries Expense (Administrative) Office Supplies Unearned Revenue Interest Expense Depreciation Expense-Equipment (Administrative) Utilities Expense (Administrative) Delivery Expense (Selling) Requirements 1. Prepare a single-step income statement. $ 550 45,500 44,000 Accumulated Depreciation-Equipment 3,000 290,000 21,600 1,700 5,500 13,200 Equipment 2,000 Interest Payable 1,315 Rent Expense (Administrative) 4,700 Salaries Expense (Selling) 3,300 Utilities Expense (Selling) Accounts Payable Accounts Receivable Print Common Stock Retained Earnings Dividends Cash Cost of Goods Sold Done S 17,800 35,200 36,700 34,000 11,665 22,000 7,700 139,200 131,500 1,000 9,400 5,800 11,500Cost of Goods Sold Beginning Inventory Add: Purchases Freight-in Direct Labor Indirect Expenses Inventory Available Less: Ending Inventory Cost of Goods Sold Gross Profit (Loss) Sales Budget Actual Sales $ 604,461.00 $ 97,400.00 Less Cost of Sales $ 91,421.57 $ 14,731.24 Net Sales $ 513,039.43 $ 82,668.76 Operating Expenses Accounting $ 53,040.00 $ 8,840.00 Advertising $ 15,000.00 $ 2,400.00 Wages $ 128,000.00 $ 21,500.00 Vehicle Expense $ 3,600.00 $ 700.00 Bank Charges $ 2,400.00 $ 400.00 Printing $ 4,800.00 $ 600.00 Insurance $ 15,600.00 $ 2,600.00 Interest Expense $ 3,600.00 $ 625.00 Taxes $ 12,000.00 $ 2,250.00 Rent $ 28,800.00 $ 4,900.00 Telephone $ 4,800.00…
- Sales revenue - Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax = Net income 1 2 31.000 31.000 18.600 18.600 12.400 12.400 1.360 1.360 1.700 1.700 9.340 9.340 3.269 3.269 6.071 6.071 9 31.000 18.600 12.400 1.360 1.700 9.340 3.269 6.071 10 31.000 18.600 12.400 1.360 1.700 9.340 3.269 6.071Effect of the error # 1 for the year 2020 Answer the ff: O-Overstated U-Understated X-No effect Purchases Cost of Sales Net income Inventory Accounts Payable RE before closing RE after closingAssuming a companys year-end inventory were understated by $16,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: Equity
- Assuming a companys year-end inventory were overstated by $5,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: EquityRequired information For Year Ended December 31 Sales Cost of goods sold Other operating expenses Current Year $ 411, 225 209,550 12, 100 9,525 $ 673,500 642, 400 $31,100 $ 1.90 :. -. - == ....... 9 US Sa M(1)Garcon Company | Pepper Company (2) Finished goods inventory, beginning $ 13,200 / $ 16, 750 Work in process inventory, beginning 18,000/ 22,650 Raw materials inventory, beginning 9, 800/12, 750 Rental cost on factory equipment 30, 250/26, 350 Direct labor 19, 400 / 39,400 Finished goods inventory, ending 17,300 / 16, 400 Work in process inventory, ending 26, 200/20, 400 Raw materials inventory, ending 8, 000/ 9,200 Factory utilities 14, 100/13, 750 General and administrative expenses 27, 500/53, 500 Indirect labor 12, 150 / 12, 260 Repairs-Factory equipment 4, 820/2, 350 Raw materials purchases 47,000/67,500 Selling expenses 62, 400 / 54,400 Sales 295, 320/394, 170 Cash 29, 000/24, 200 Accounts receivable, net 15,800 / 23,450
- Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System with Sales Returns and Allowances Sam Edwards owns a business called Sam's Stuff. A physical count determined his ending inventory as of December 31, 20-- was $72,000. Based on past experience, Sam estimates that $5,000 of sales from this year will be returned next year. The cost of the merchandise expected to be returned is $3,000. Using the partial Trial Balance provided below, set up T accounts for Merchandise Inventory, Estimated Returns Inventory, Customer Refunds Payable, Sales Returns and Allowances, and Income Summary and prepare the year-end adjustments for Merchandise Inventory and related accounts. TRIAL BALANCE (PARTIAL) DEBIT CREDIT Merchandise Inventory 60,000.00 Estimated Returns Inventory 2,500.00 Customer Refunds Payable 4,000.00 Sales Returns and Allowances 20,000.00 Income Summary For grading purposes use the labels shown and enter transactions in alphabetical order. TB Trial balance…Cash Accounts receivable Raw materiala inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings (prior year) Sales Coat of goods sold Factory overhead General and administrative expenses Totals Debit Credit $ 71,000 40,000 25,000 0 12,000 4,000 $ 10,000 13,000 112,000 24,000 40,000 40,000 94,000 171,000 $ 328,000 $ 328,000 These six documents must be processed to bring the accounting records up to date. Materials requisition 10: Materiala requisition 111 Materials requisition 121 Labor time ticket 521 Labor time ticket 53: Labor time ticket 541 $ 4,800 direct materials to Job 402 $ 7,400 direct materials to Job 404 $ 2,100 indirect materiala $ 6,000 direct labor to Job 402 $ 14,000 direct labor to Job 404 $ 5,000 indirect labor Jobs 402 and 404 are the only jobs in process at year-end. The predetermined overhead rate is 100% of direct labor cost. Problem 19-3A (Algo) Parts 4 and 5 4. Prepare an income…Sales Cost of goods sold Gross profit Sales commissions Advertising Salaries Payroll taxes Employee benefits Rent Depreciation Supplies Utilities Legal and accounting Miscellaneous Interest expense Net income before taxes Income taxes Net income UDEN SUPPLY COMPANY Comparative Income Statements Years Ended December 20X1, 20X2, and 20X3 Expected misstatement (Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 9,800 10,600 6,770 7,340 3,030 3,260 690 740 200 210 1,088 1,110 190 195 172 176 63 65 65 69 30 33 24 26 39 43 15 17 240 252 214 324 48 73 166 251 9,000 6,210 2,790 630 180 1,066 185 168 61 61 27 22 35 13 222 120 27 93 20X4 Expected c. Uden's unaudited financial statements for the current year show a 30.75 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. (Enter your answers in thousands.)