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Principles of Cost Accounting
17th Edition
ISBN: 9781305087408
Author: Edward J. Vanderbeck, Maria R. Mitchell
Publisher: Cengage Learning
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Question
Please complete the Income statement
Calculation of Direct Materials Used | ||||
(Analyze Raw Materials Account) | ||||
Beginning Raw Materials Inventory | 2,373.75 | |||
Plus: Purchases of Direct Materials, Freight-in, Duties | 26111.25 | |||
Materials Available for Use | 28485 | |||
Less: Ending Raw Materials Inventory | 18,041.32 | <<<To |
||
Direct Materials Used | 10443.68 | |||
Calculation of Cost of Goods Manufactured | ||||
(Analyze WIP Inventory) | ||||
Beginning WIP Inventory | 0 | |||
Plus |
355,428.68 | |||
Direct Materials Used | 10443.68 | |||
Direct Labor | 135,000.00 | |||
Manufacturing |
191,943.68 | |||
Total Manufacturing Costs to Account For | 337,387.36 | |||
Less: Ending WIP Inventory | 18,041.32 | <<<To balance sheet | ||
Cost of Goods Manufactured | 319346.04 | |||
Calculation of Cost of Goods Sold | ||||
(Analyze Finished Goods Inventory) | ||||
Beginning Finished Goods Inventory | 0 | |||
Plus: Cost of Goods Manufactured | 319346.04 | |||
Cost of Goods Available for Sale | 319346.04 | |||
Less: Ending Finished Goods Inventory | 0 | <<<To balance sheet | ||
Cost of Goods Sold | 319346.04 | <<<To income statement |
Harmon's Rolls | |||||||
Income Statement | |||||||
As of December 31, 2021 | |||||||
Sales Revenues | $ 382,616.00 | ||||||
Less: Cost of Goods Sold | 319,346.04 | <<<From Calculations Tab | |||||
Gross Profit | $ 63,269.96 | ||||||
Operating Expenses | |||||||
Payment of utilities first year | 15,000 | ||||||
Employee salaries first year | 135,000 | ||||||
Insurance coverage (General Liability, workers’ compensation, property liability) | 10,000 | ||||||
Equipment cost | 30,000 | ||||||
Cost of inventory (raw materials and packaging materials) | 28,485 | ||||||
Cost of renting facility for tissue production for at least a year | 40,000 | ||||||
Cost of tissue distribution truck | 50,000 | ||||||
Cost of administrative start-up expenses (computers, printers, stationeries, phones | 7,000 | ||||||
All other Start up expenses | 11,902 | ||||||
Miscellaneous | 10,000 | ||||||
Total Operating Expenses | 337,387 | ||||||
Net income | $45,229 | ||||||
b. | |||||||
Harmon's Rolls | |||||||
Balance Sheet | |||||||
As of December 31, 2021 | |||||||
ASSETS | LIABILITIES | ||||||
Total Liabilities | - | ||||||
Common stock | - | ||||||
Owner Investment | |||||||
- | |||||||
Total Stockholders' Equity | - | ||||||
Total Assets | $0 | Total Liabilities & Stockholders' Equity | - | ||||
Remember Assets = Liabilities + Owners Equity - your balance sheet must be in balance | |||||||
Make sure raw materials, work in progress, and finished goods inventory show on your balance sheet | |||||||
These should be the same figures that you use for ending balances on your Calculations tab |
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