Homework Help is Here – Start Your Trial Now!
Business
Accounting
Stuart Manufacturing Company was started on January 1, Year 1, when it acquired $83,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,400, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,000 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $17,280 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 4,900 units of product and sold 3,980 units at a price of $16 each in Year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in Year 1. Note: Round "Average cost per unit" to 2 decimal places. b. Determine the amount of cost of goods sold that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. c. Determine the amount of the ending inventory balance that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. d. Determine the amount of net income that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. e. Determine the amount of retained earnings that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. f. Determine the amount of total assets that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net income e. Retained earnings f. Total assets

Stuart Manufacturing Company was started on January 1, Year 1, when it acquired $83,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,400, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,000 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $17,280 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 4,900 units of product and sold 3,980 units at a price of $16 each in Year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in Year 1. Note: Round "Average cost per unit" to 2 decimal places. b. Determine the amount of cost of goods sold that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. c. Determine the amount of the ending inventory balance that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. d. Determine the amount of net income that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. e. Determine the amount of retained earnings that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. f. Determine the amount of total assets that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net income e. Retained earnings f. Total assets

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...
See similar textbooks
icon
Related questions
Question
Stuart Manufacturing Company was started on January 1, Year 1, when it acquired $83,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,400, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,000 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $17,280 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 4,900 units of product and sold 3,980 units at a price of $16 each in Year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in Year 1. Note: Round "Average cost per unit" to 2 decimal places. b. Determine the amount of cost of goods sold that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. c. Determine the amount of the ending inventory balance that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. d. Determine the amount of net income that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. e. Determine the amount of retained earnings that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. f. Determine the amount of total assets that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net income e. Retained earnings f. Total assets
Transcribed Image Text:Stuart Manufacturing Company was started on January 1, Year 1, when it acquired $83,000 cash by issuing common stock. Stuart immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,400, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,000 salvage value and an expected useful life of three years. The company paid $11,700 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid $17,280 for raw materials that were used to make inventory. All inventory was started and completed during the year. Stuart completed production on 4,900 units of product and sold 3,980 units at a price of $16 each in Year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in Year 1. Note: Round "Average cost per unit" to 2 decimal places. b. Determine the amount of cost of goods sold that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. c. Determine the amount of the ending inventory balance that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. d. Determine the amount of net income that would appear on the Year 1 income statement. Note: Do not round intermediate calculations. e. Determine the amount of retained earnings that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. f. Determine the amount of total assets that would appear on the December 31, Year 1, balance sheet. Note: Do not round intermediate calculations. a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net income e. Retained earnings f. Total assets
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
steps

Unlock instant AI solutions

Tap the button
to generate a solution

SEE SOLUTION
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS