Required information[The following information applies to the questions displayed below.]Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at thebeginning and end of 20x1.Inventory ClassificationRaw materialJanuary 1, 20x1$ 60,000December 31, 20x1$ 70,000Work in processFinished goods120,000150,000115,000165,000During 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturingoverhead costs were as follows:$ 10,00025,000Indirect materialIndirect laborDepreciation on plant and equipment100,000Utilities25,000Other30,000Sales revenue was $1,105,000 for the year. Selling and administrative expenses for the year amounted to $110,000. Thefirm's tax rate is 40 percent.3. Prepare an income statement.* Answer is not complete.ALEXANDRIA ALUMINUM COMPANYIncome StatementFor the Year Ended December 31, 20x1Sales revenueO$ 1,105,000 OLess: Cost of goods sold(820,000) OGross margin285.000 OSelling and administrative expenses(110,000) OIncome before taxes175,000 XIncome tax expense220,000Income tax expense105,000 xMissingMissing$115,000

3. Alexandria Aluminium Company Income Statement For the year ended December 31, 20x1…

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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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Cille Yuan Manufacturing Company makes only one product. The company has a normal capacity of 32,000 units annually. Cille Yuan is expecting to produce 30,000 units next year but during the year, it actually produced 31,000 units. The company accountant has budgeted the following factory overhead costs for the coming year: Indirect materials P2 per unit 144,000 plus P2 per unit 60,000 plus PO.04 per unit 20,000 plus PO.34 per unit 16,000 plus PO.12 per unit 210,000 per year 50,000 per year 12,000 per year Indirect labor Plant utilities Repairs for the plant Material handling costs Depreciation plant assets Rent of plant building Insurance on plant building Using the most appropriate overhead application based, the applied factory overhead for the year is
On May 11 ABC Company sold 100 units to the customer. At the date of this sale the ABC Company’s perpetual inventory records included the following cost layers for the inventory: Purchase date Quantity unit sold Total cost May 1 60 $800 $48000 May 2 40 $820 $32800 May 7 20 $850 $17000 Required: Prepare subsidiary ledger and Journal entries for CGS under: 1. Specific Identification Method ( 60 of the units sold were purchased on May 01 and the remaining units were purchased on May 03) 2. Average cost Method 3. FIFO Method 4. LIFO Method
! Required information [The following information applies to the questions displayed below.] Alexandria Aluminum Company, a manufacturer of recyclable soda cans, had the following inventory balances at the beginning and end of 20x1. Inventory Classification Raw material Work in process Finished goods January 1, 20x1 $ 50,000 120,000 170, 000 December 31, 20x1 $ 70,000 115,000 165,000 Durjng 20x1, the company purchased $250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follows: Indirect material Indirect labor Depreciation on plant and equipment Utilities 24 12,000 26,000 100,000 26, 000 30,000 Other Sales revenue was $1,110,000 for the year. Selling and administrative expenses for the year amounted to $110,000. The firm's tax rate is 40 percent. Required: 7. of 9 Next > < Prev 6.
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Alexandria Aluminum Company, a manufacturer of recyclable soda Cans, had the following inventory balances at the beginning and end of 20x1. Inventory classification Raw material Work in process Finished goods Indirect material Indirect labor January 1,20x1 Utilities Other $ 65,000 120,000 160,000 December31,20x1 During 2005, the company purchased $ 250,000 of raw material and spent $400,000 on direct labor. Manufacturing overhead costs were as follow: $ 11,000 26,000 Depreciation on plant and equipment 100,000 70,000 115,000 165,000 23,000 30,000 Sales revenue was $ 1,109,000 for the year. Selling and administrative expenses For the year amounted to $ 110,000. The firm's tax rate is 40%. Required: Prepare a schedule of cost goods manufactured. Prepare a schedule of cost of goods sold. Prepare an income statement.
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The following items were included in the inventory list of ABC Corp:Materials unused in the production, P10,000Materials used in the production, P50,000Conversion costs, P50,000Unsold goods in the warehouse, 67,000Which of the following conclusion is true about ABC Corp? a. The entity is a trading company b. ABC sells services to its clients c. The unsold goods in the warehouse are finished goods inventory d. The business purchases materials and sell them at a higher price
Parker Corp. included the following items under its inventory account: Raw materials.. .P 1,400,000 200,000 650,000 60,000 150,000 2,000,000 Advances for materials ordered. Work in process.. Unexpired inventory insurance.. Advertising catalogs and packaging cartons. Finished goods inventory in the warehouse... Finished goods in the company owned retail store, stated at 50% mark-up on its cost... Finished goods in the hands of consignees including 40% profit on sales.... Finished goods in transit to customers, Shipped at FOB-Destination 750,000 400,000 stated at cost... 250,000 100,000 50,000 40,000 Finished goods out on customers' approval, at cost. Unsalable finished goods, at cost. Office stationeries and supplies. Materials in transit, shipped FOB-Shipping point, excluding P 30,000 freight cost... Goods held on consignment, at sales price, cost, P 150,000.. What is the correct amount of inventory? A. P5,375,000 330,000 200,000 В. Р 5,500,000 C. P5,540,000 D. P5,250,000
Required information [The following information applies to the questions displayed below.] Allied Merchandisers was organized on May 1. Macy Company is a major customer (buyer) of Allied (seller) products. May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $10 cash per unit (for a total cost of $10,000). May 5 Allied sold 500 of the units in inventory for $14 per unit (invoice total: $7,000) to Macy Company under credit terms 2/10, n/60. The goods cost Allied $5,000. May 7 Macy returns 50 units because they did not fit the customer's needs (invoice amount: $700). Allied restores the units, which cost $500, to its inventory. May 8 Macy discovers that 50 units are scuffed but are still of use and, therefore, keeps the units. Allied gives a price reduction (allowance) and credits Macy's accounts receivable for $300 to compensate for the damage. May 15 Allied receives payment from Macy for the amount owed on the May 5 purchase;…
! Required information [The following information applies to the questions displayed below.] A company began January with 8,000 units of its principal product. The cost of each unit is $9. Inventory transactions for the month of January are as follows: Date of Purchase January 10 January 18 Totals Total Date of Sale January 5 January 12 January 20 Total Includes purchase price and cost of freight. Perpetual FIFO: Sales Beginning Inventory Purchases: January 10 January 18 Units 5,000 8,000 13,000 11,000 units were on hand at the end of the month. Units 3. Calculate January's ending inventory and cost of goods sold for the month using FIFO, perpetual system. 3,000 3,000 4,000 10,000 5,000 8,000 21,000 Purchases Unit Cost* $ 10 11 Cost of Goods Available for Sale Cost of Number Unit Goods of units Cost Available for Sale 8,000 $9.00 $ 72,000 10.00 11.00 Total Cost $ 50,000 88,000 $ 138,000 50,000 88,000 $ 210,000 Cost of Goods Sold - January 5 Number of units sold 0 0 0 Cost per unit $…
The following is an extract of records of the manufacturing concern ABC Ltd, who has approached you for assistance. Inventory on 1 January 2018: Finished product R12000 WIP R20000 Direct Materials R35000 Inventory on 31 December 2018: Finished product R12000 WIP R20000 Direct Materials R24250 Sales = R310’000 Direct Material purchases = R17’000 Freight on Direct Material = R1250 Direct labour for the year was R29’000 The following overheads were incurred for the period: Rent = R22000 Indirect Labour = R9500 Indirect Materials = R7500 Water and Lights = R8000 Telephone = R5000 A total of 50% of the overheads was used in the production facility. Required: Calculate Costs of goods manufactured R90 000 R88 000 R84 000 R80 000 None of the above
3. What December 31, 20X3, balance sheet amounts would be different-and by how much-if Bourne had used FIFO to account for its inventories? 4. What were the LIFO liquidation profits reported in 20X3 both pre-tax and after-tax?

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