Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

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Answer 1

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Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

2.

To determine

Analysis the information to identify two observations that leads to the concern.

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Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000 Direct labor 313,000 Factory overhead 650,700 The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000 Work-in-process 41,400 Finished goods 25,600 The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Magna Carta Interiors is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 150,000 and estimated factory overhead is $1,140,000. The following information is for September. Job X was completed during September, while Job Y was started but not finished. September 1, inventories: Materials $ 25,700 Work-in-process (All Job X) 55,100 Finished goods 107,300 Materials purchases $ 174,000 Direct materials requisitioned: Job X $ 75,700 Job Y 69,700 Direct labor hours: Job X 8,700 Job Y 7,200 Labor costs incurred: Direct labor ($7.70 per hour) $ 122,430 Indirect labor 50,100 Factory supervisory salaries 12,800 Rental costs: Factory $ 11,000 Administrative offices 4,900 Total equipment depreciation costs: Factory $ 12,100 Administrative offices 4,500 Indirect materials used $ 30,400 The total…

Grass Reed Bayou is a bottling company in The Netherlands. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was $680,000, and management budgeted $320,000 of direct labor costs. During the year, the company incurred the following actual costs. Direct materials used $ 382,000Direct labor 313,000Factory overhead 650,700The January 1 balances of inventory accounts are shown below. Materials-all direct $ 64,000Work-in-process 41,400Finished goods 25,600The December 31 balances of these inventory accounts were ten percent lower than the balances at the beginning of the year. The cost of goods manufactured during the year is:

Answer 2

Question

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

2.

To determine

Analysis the information to identify two observations that leads to the concern.

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Answer 3

Question

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

2.

To determine

Analysis the information to identify two observations that leads to the concern.

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Answer 4

Question

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

2.

To determine

Analysis the information to identify two observations that leads to the concern.

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Answer 5

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

2.

To determine

Analysis the information to identify two observations that leads to the concern.

Answer 6

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

Answer 7

Chapter 6, Problem 5SDC

1.

To determine

Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

Answer 8

2.

To determine

Analysis the information to identify two observations that leads to the concern.

Answer 9

2.

To determine

Analysis the information to identify two observations that leads to the concern.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

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Prepare the multistep income statement for external reporting purposes, and calculate the gross profit percentage for each year.

Analysis the information to identify two observations that leads to the concern.

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