liabilities: Cash. Accounts receivable.. Finished goods.. Work in process.. Materials. $ 5,000 10,000 6,000 2,000 4,000 500 ..........*.** ........ ...... ........ .......... .... Prepaid expenses. .. Property, plant, and equipment (net).. Current liabilities.. 30,000 17,500 .... prepaid expenses, current liabilities, and common stock were the same on December 3 198, as they had been on Decemher 31, 19A. Inventorles were reduced by exactly 50 except for the finished goods inventory, which was reduced by 33V%. Plant assets (non were reduced by depreciation of $4,000, charged 4 to factory overhead and v administrative expense. Sales of $60,000 were made on account, costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost leaving $2,000 underapplied that was closed into the cost of goods sold account. Tolel marketing and administrative expenses amounted to 10% and 15%, respectively, of the gross sales. Required: (1) Prepare a balance sheet as of December 31, 19B. (2) Prepare an income statement for the year 19B, with details of the cost of goods manufactured and sold. (AICPA adapted)

liabilities: Cash. Accounts receivable.. Finished goods.. Work in process.. Materials. $ 5,000 10,000 6,000 2,000 4,000 500 ..........*.** ........ ...... ........ .......... .... Prepaid expenses. .. Property, plant, and equipment (net).. Current liabilities.. 30,000 17,500 .... prepaid expenses, current liabilities, and common stock were the same on December 3 198, as they had been on Decemher 31, 19A. Inventorles were reduced by exactly 50 except for the finished goods inventory, which was reduced by 33V%. Plant assets (non were reduced by depreciation of $4,000, charged 4 to factory overhead and v administrative expense. Sales of $60,000 were made on account, costing $38,000. Direct labor cost was $9,000. Factory overhead was applied at a rate of 100% of direct labor cost leaving $2,000 underapplied that was closed into the cost of goods sold account. Tolel marketing and administrative expenses amounted to 10% and 15%, respectively, of the gross sales. Required: (1) Prepare a balance sheet as of December 31, 19B. (2) Prepare an income statement for the year 19B, with details of the cost of goods manufactured and sold. (AICPA adapted)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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