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Anastasy [175]
3 years ago
11

Consider the following account balances (in thousands) for the Peterson Company.

Business
1 answer:
Leya [2.2K]3 years ago
8 0

Answer:

Peterson Company

1. A schedule for the cost of goods manufactured for 2017:

A. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Beginning direct materials inventory            21,000

less ending direct materials inventory        (23,000)

Beginning Work-in-process inventory         26,000

less ending work in process inventory      (25,000 )

Purchases of direct materials                       74,000

Direct manufacturing labor                          22,000

Indirect manufacturing labor                        17,000

Plant insurance                                               7,000

Depreciation - plant, building, & equipment 11,000

Repairs and maintenance - plant                  3,000

Total cost of manufactured goods         $133,000

B. Peterson Company

Schedule of Cost of Goods Manufactured

For the Year Ended December 31, 2017 (in thousands)

Direct materials

Beginning direct materials inventory            21,000

Purchases of direct materials                       74,000

Cost direct materials available                     95,000

less ending direct materials inventory         23,000

Direct materials used                                           72,000

Direct manufacturing labor                                 22,000

Indirect manufacturing costs:

Labor                                     17,000

Depreciation                         11,000

Plant Insurance                     7,000

Repairs and maintenance    3,000            

Total Indirect manufacturing costs                    38,000

Manufacturing costs incurred during 2017  $132,000

Beginning work in process inventory             26,000

Total costs to account for                             $158,000

less ending work in process inventory          25,000

Cost of goods manufactured                      $133,000

2. Peterson Company

Income Statement

For the Year Ended December 31, 2017 (in thousands)

Sales Revenue                                                      $310,000

Cost of goods sold:

Beginning Finished goods inventory      13,100

Cost of goods manufactured               133,000

Cost of goods available for sale         $146,100

less ending Finished goods inventory 20,000

Cost of goods sold                              $126,100      126,100

Gross profit                                                           $183,900

Operating costs :

Selling & Distribution costs  91,000

General & Admin. costs      24,000

Total operating costs                                            $115,000

Operating income (loss)                                       $68,900

Explanation:

The cost of manufactured goods is the sum of the costs of direct materials, direct labor, manufacturing overhead, and work in process inventory.

The cost of goods for sale is the sum of the beginning finished goods inventory plus the cost of manufactured goods less the ending finished goods inventory.

The income statement is a statement of revenue and costs in order to show the financial performance of an entity during a period of time.  It shows the gross profit and net operating profit or loss.

The Gross profit is the difference between Sales Revenue and the Cost of goods sold.

The Operating Profit (Loss) is the difference between the Gross profit and the Operating costs.

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2 years ago
The main expense of a merchandiser is usually ________.
olya-2409 [2.1K]

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2 years ago
The following transactions occurred during July:1. Received $1,200 cash for services performed during July.2. Received $6,400 ca
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Answer:

The amount of revenue that will be reported on the income statement for the month ended July 31 is equal to $5,300.

Explanation:

The applicable accounting concept here is accrual concept.

Accrual concept states that revenue is recognized when it is earned and expenses are also recognized when they are incured no matter when cash is received or paid.

Based on the accrual concept, only transactions 1 and 4 will be used in calculating the amount of revenue for July as follows:

July revenue = Cash received for services performed during July + Billing of customers for services performed on account in July = $1,200 + $4,100 = $5,300

Therefore, the amount of revenue that will be reported on the income statement for the month ended July 31 is equal to $5,300.

7 0
2 years ago
An adult with a developmental disability works at a local product fulfillment and distribution center. She takes the bus to get
harkovskaia [24]

Answer: Tracking and identification.

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3 years ago
Jubilee's Bakery is budgeting cash for 2017. The cash balance at December 31, 2016, was $6,000. Jubilee's Bakery budgets 2017 ca
marusya05 [52]

Answer: B. There is $19,000 available for additional investments.

Explanation:

Cash Receipts both Estimated and available

= Beginning balance + budget receipts

= 6,000 + 81,000

= $87,000

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= 44,000 + 34,000 + 15,000

= $93,000

Additional financing required = Cash receipts - Cash payment - minimum cash balance

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= -$19,000

4 0
2 years ago
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