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Business Accounting FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS

Problem 14-3B Schedule of cost of goods manufactured and income statement; analysis of inventories P2 A1 Using the information from Problem 14-2B and the following additional inventory information for Best Bikes, complete the requirements below. Assume an income tax expense is $136,700 for the year. Inventories Raw materials, December 31, 2016 $ 40,375 Raw materials, December 31, 2017…………… 70,430 Work in process, December 31,2016 12,500 Work in process, December 31, 2017………. 14,100 Finished goods, December 31, 2017 177,200 Finished goods, December 31, 2017………. 141,750 Required Prepare the company’s 2017 schedule of cost of goods manufactured. Check (1) Cost of goods manufactured, $1,816,995 Prepare the company’s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days’ sales inventory. defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the types of inventories. Round answers to one decimal place.

Problem 14-3B Schedule of cost of goods manufactured and income statement; analysis of inventories P2 A1 Using the information from Problem 14-2B and the following additional inventory information for Best Bikes, complete the requirements below. Assume an income tax expense is $136,700 for the year. Inventories Raw materials, December 31, 2016 $ 40,375 Raw materials, December 31, 2017…………… 70,430 Work in process, December 31,2016 12,500 Work in process, December 31, 2017………. 14,100 Finished goods, December 31, 2017 177,200 Finished goods, December 31, 2017………. 141,750 Required Prepare the company’s 2017 schedule of cost of goods manufactured. Check (1) Cost of goods manufactured, $1,816,995 Prepare the company’s 2017 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses. Compute the (a) inventory turnover, defined as cost of goods sold divided by average inventory, and (b) days’ sales inventory. defined as 365 times ending inventory divided by cost of goods sold, for both its raw materials inventory and its finished goods inventory. (To compute turnover and days’ sales in inventory for raw materials, use raw materials used rather than cost of goods sold.) Discuss some possible reasons for differences between these ratios for the types of inventories. Round answers to one decimal place.

FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS

FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS

9th Edition

ISBN: 9781264624829

Author: Wild

Publisher: MCG

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Chapter 14, Problem 2PSB

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Chapter 14 Solutions

FINANCIAL+MANAG.ACCT.(LL)-W/ACCESS

Ch. 14 - Prob. 1QS Ch. 14 - QS 14-4 Direct and indirect costs C2 Diez Company...Ch. 14 - Classifying product costs C2 Identify each of the...Ch. 14 - QS 14-6 Product and period costs C3 Identify each...Ch. 14 - Prob. 6QS Ch. 14 - Exercise 14-1 Sources of accounting information C1...Ch. 14 - Prob. 5E Ch. 14 - Prob. 10E Ch. 14 - Prob. 13E Ch. 14 - Prob. 14E

Ch. 14 - Prob. 15E Ch. 14 - Prob. 16E Ch. 14 - Exercise 14-17 Lean business practice C6 Many...Ch. 14 - Prob. 3PSA Ch. 14 - Problem 14-3B Schedule of cost of goods...Ch. 14 - Describe the managerial accountant’s role in...Ch. 14 - Distinguish between managerial and financial...Ch. 14 - Prob. 3DQ Ch. 14 - Prob. 4DQ Ch. 14 - Distinguish between (a) factory overhead and (b)...Ch. 14 - Prob. 6DQ Ch. 14 - What product cost is both a prime cost and a...Ch. 14 - APPLE Assume that we tour Apple’s factory where it...Ch. 14 - Prob. 9DQ Ch. 14 - Prob. 10DQ Ch. 14 - Prob. 11DQ Ch. 14 - Prob. 12DQ Ch. 14 - Prob. 13DQ Ch. 14 - Prob. 14DQ Ch. 14 - Prob. 15DQ Ch. 14 - Prob. 16DQ Ch. 14 - What are the three categories of manufacturing...Ch. 14 - List several examples of factory overhead.Ch. 14 - Prob. 20DQ Ch. 14 - GOOGLE Prepare a proper title for the annual...Ch. 14 - Prob. 22DQ Ch. 14 - Prob. 23DQ Ch. 14 - Prob. 24DQ Ch. 14 - Prob. 2BTN

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