Hankook Company Statement of Cost of Goods Manufactured For the year ended Dec 31st_2015 Direct material used 12000 Finished goods inventory, Jan. 1, 2015 400 Office insurance 100 Manufacturing overhead: Marketing, distribution, and customer-service costs 50 Plant insurance 200 Indirect material 500 Plant utilities Total Manufacturing Cost Work in process inventory, Dec 31st 2015 Cost of goods manufactured 80 13330 300 13630 Hankook Company Statement of cost of goods sold For the year ended December 31, 2015 Work-in-process inventory, Jan. 1, 2015 Cost of goods manufactured Cost of goods available for sale Finished goods inventory, Dec. 31, 2015 Cost of goods sold. 1500 13630 15130 100 15030 Hankook Company Income statement For the year ended December 31, 2015 Revenue 25000 Plant supplies used Cost of goods sold 100 15030 Gross margin 9870 Operating costs: Direct labor 5000 Depreciation-plant and equipment Miscellaneous manufacturing overhead Office utilities 100 30 400 Operating income 4340
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Hankook Company employ new employee and are assigned to make Statement of Cost of Manufactured, Statement of Cost of Goods Sold, and Income Statement. The results attached on picture below
Questions :
a. Identify the period cost and the total in USD
b. If there is something wrong with the income statement above, correct the income statement above so all the item cost is where it should be.
c. Calculate the prime costs, conversion costs,
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