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4 years ago

Financial Statements of a Manufacturing Firm

Business

1 answer:

Monica [59]4 years ago

4 0

Answer:

Required A.

Focault Inc.

Income Statement For the Month Ended July 31

Revenues $1,120,000

Cost of Goods Sold ($630,000)

Gross Profit $ 490,000

Selling and administrative expenses:

Selling Expenses ($252,800)

Administrative Expenses ($100,000)

Income from Operations $137,2000

Required B

Materials inventory, July 31 = $45,000

Work in process inventory, July 31 = $36,000

Finished goods inventory, July 31 = $22,000

Explanation:

Raw Materials T - Account

Debit :

Purchases $320,000

Totals $320,000

Credit:

Used in Production $275,000

Ending Balance $45,000

Totals $320,000

Manufacturing Cost Schedule

Raw Materials $275,000

Direct labor $236,000

Overheads ($236,000 × 75%) $177,000

Total Manufacturing Cost $688,000

Less Cost Transferred to Finished Goods ($652,000)

Ending Work In Process $36,000

Finished Goods T - Account

Debit :

Cost of Goods Manufactured $652,000

Totals $652,000

Credit :

Trading Account : Cost of Sales ($630,000)

Ending Balance $22,000

Totals $652,000

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The income statement of Gopitkumar Co. for the month of July shows net income of $3,000 based on Service Revenue $7,000, Salarie

Alja [10]

Answer:

Explanation:

Income Statement

Calculations:

Service revenue = Service revenue+ Services performed but unrecorded = 7000+700 = 7700

Salaries and wages expense = Salaries and wages expense + Accrued but unpaid salaries and wages = 2200 + 500 = 2700

Supplies expenses = Supplies expenses - supplies that are still on hand = 1400 -350 = 1050

Income statement

Service revenue 7700

Expenses:

Salaries and wages expenses 2700

Supplies expenses 1050

Utilities expense 400

Insurance expense 400

Depreciation expenses 350

Total expenses 4900

Net Income (7700-4900) 2800

4 0

3 years ago

Read 2 more answers

Presented below is information for Cullumber Co. for the month of January 2022.

pentagon [3]

Answer:

Cullumber Co.

Comprehensive income statement for the month ended January 2022.

Sales revenue 400,000

Less Sales returns and allowances (17,000)

Net Sales 383,100

Less Cost of goods sold (201,500)

Gross Profit 181,500

Less Expenses

Rent expense 33,900

Sales discounts 10,000

Freight-out 6,300

Insurance expense 13,400

Salaries and wages expense 61,200

Income tax expense 5,300 (130,100)

Profit for the Year 51,400

Other comprehensive income 2,000

Total Comprehensive income 53,400

Explanation:

The Comprehensive income statement for the month ended January 2022 has been prepared above.

8 0

3 years ago

Which is not a reason why a company might decide to set up facilities in another country

olga_2 [115]

The Correct answer is B "TO INCREASE TARIFFS" Tariffs are a tax that a country puts on goods imported, that means if you moved to a different country your company would have to pay the tariffs, so to combat the price of tariffs, and why they moved in the first place, the rest of the answers would be correct. Because it must be cheaper.

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4 years ago

Heather is American and works for a U.S.-based company in Brazil. It appears the company has made a(n) ______ staffing choice.

Naya [18.7K]

Answer:

ethnocentric

Explanation:

A choice of ethnocentric staff can be defined as an approach in which an organization chooses to hire a team of staff of the same nationality as the host company, which guarantees several advantages and also some disadvantages.

A significant advantage is that having employees of the same nationality as the headquarters company, ensures that there is greater cohesion between culture and language, which guarantees an advantage in reducing barriers that may negatively affect the flow of organizational operations.

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4 years ago

Kuhn company is considering a new project that will require an initial investment of $4 million. It has a target capital structu

patriot [66]

Answer:

b. 9.00%

Explanation:

For the computation of WACC first we need to follow some steps which is shown below:-

Step 1

Cost of debt = 5.48% which is explained with the help of attachment.

Given that,

Present value = $1,555.38

Future value or Face value = $1,000

PMT = 1,000 × 11% = $110

NPER = 15 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after applying the above formula, the cost of debt is

Step 2

Cost of preferred stock = Annual preferred dividend ÷ Price

= $8 × $92.25

= 0.086721

Step 3

Cost of equity = Dividend ÷ (Stock price × (1 - flotation cost)) + Growth rate

= 2.78 ÷ (33.35 × (1 - 0.08)) + 0.092

= 18.26%

WACC = Weight of debt × Cost debt) + (Weight of preference stock × Cost of preference stock) + (Weight of equity × cost of equity)

= (0.58 × (0.0548 × (1 - 0.4)) + (0.06 × 0.086721) + (0.36 × 0.1826068)

= 9.00%

6 0

3 years ago