Schedule of Cost of Goods Manufactured and Sold The following amounts are available for 2019 for Bourne Manufacturing Company: Administrative Salaries (non-factory) $70,000 Administrative rent (non-factory) 35,000 Advertising and promotion expense 41,000 Depreciation-administrative 22,000 Depreciation-factory 30,000 Depreciation-selling 17,000 Direct labor 175,000 Factory rent 18,000 Factory supplies used 12,000 Finished goods inventory (January 1) 57,000 Finished good inventory (December 31) 50,000 Indirect materials used 14,000 Indirect labor 19,000 Materials inventory (January 1) 15,000 Materials inventory (December 31) 20,000 Net delivered cost of materials purchased 138,000 Other factory overhead 26,000 Sales 845,000 Sales salaries expense 72,000 Work-in-process inventory (January 1) 18,000 Work-in-process inventory (December 31) 20,000 Using the above data, prepare a schedule of cost of goods manufactured and sold.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
| P2-1A | Schedule of Cost of Goods Manufactured and Sold | |||||||
| The following amounts are available for 2019 for Bourne Manufacturing Company: | ||||||||
| Administrative Salaries (non-factory) | $70,000 | |||||||
| Administrative rent (non-factory) | 35,000 | |||||||
| Advertising and promotion expense | 41,000 | |||||||
| 22,000 | ||||||||
| Depreciation-factory | 30,000 | |||||||
| Depreciation-selling | 17,000 | |||||||
| Direct labor | 175,000 | |||||||
| Factory rent | 18,000 | |||||||
| Factory supplies used | 12,000 | |||||||
| Finished goods inventory (January 1) | 57,000 | |||||||
| Finished good inventory (December 31) | 50,000 | |||||||
| Indirect materials used | 14,000 | |||||||
| Indirect labor | 19,000 | |||||||
| Materials inventory (January 1) | 15,000 | |||||||
| Materials inventory (December 31) | 20,000 | |||||||
| Net delivered cost of materials purchased | 138,000 | |||||||
| Other factory |
26,000 | |||||||
| Sales | 845,000 | |||||||
| Sales salaries expense | 72,000 | |||||||
| Work-in-process inventory (January 1) | 18,000 | |||||||
| Work-in-process inventory (December 31) | 20,000 | |||||||
| Using the above data, prepare a schedule of cost of goods manufactured and sold. |
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