Managerial Accounting, Loose-leaf Version
14th Edition
ISBN: 9781337270717
Author: WARREN, Carl S.; Reeve, James M.; Duchac, Jonathan
Publisher: South-Western College Pub
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Chapter 1, Problem 10E
a.
To determine
Income statement:
The income statement is a financial statement that shows the net income earned or net loss suffered by a company through reporting all the revenues earned, and expenses incurred by the company over a specific period of time. An income statement is also known as an operation statement, an earning statement, a revenue statement, or a
Material Inventory:
Material inventory comprises of the direct material costs, and indirect material costs that have not entered into the process of manufacturing.
Work in process Inventory:
Work in process inventory comprises of the direct material costs, direct labor
Finished goods Inventory:
Finished goods inventory comprises of the finished products that are completed manufacturing, but have not been sold.
To prepare: The March income statement for the Company DVM.
b.
To determine
The materials inventory, work in process inventory, and finished goods inventory balances at the end of the first month of operations.
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Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
a. Purchased $58,800 of materials.
b. Used $45,300 of direct materials in production.
c. Incurred $67,600 of direct labor wages.
d. Incurred $95,300 of factory overhead.
e. Transferred $158,200 of work in process to finished goods.
f. Sold goods for $282,800.
g. Sold goods with a cost of $125,800.
h. Incurred $72,300 of selling expense.
i. Incurred $31,800 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
Operating expenses:
Total onerating expenses
Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of
digital video monitors:
a. Purchased $68,200 of materials.
b. Used $52,500 of direct materials in production.
c. Incurred $78,400 of direct labor wages.
d. Incurred $110,500 of factory overhead.
e. Transferred $183,500 of work in process to finished goods.
f. Sold goods for $328,000.
g. Sold goods with a cost of $145,900.
h. Incurred $83,900 of selling expense.
i. Incurred $36,800 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
Operating expenses:
Total operating expenses
b. Determine the inventory balances at the end of the first month of operations.
Sorensen Manufacturing Company
Inventory Balances
For the Month Ended…
Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
Purchased $59,500 of materials.
Used $45,800 of direct materials in production.
Incurred $68,400 of direct labor wages.
Incurred $96,400 of factory overhead.
Transferred $160,100 of work in process to finished goods.
Sold goods for $286,200.
Sold goods with a cost of $127,300.
Incurred $73,200 of selling expense.
Incurred $32,100 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
$
$
Operating expenses:
$
Total operating expenses
$
b. Determine the inventory balances at the end of the first month of operations.
Sorensen…
Chapter 1 Solutions
Managerial Accounting, Loose-leaf Version
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - Prob. 9DQCh. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Concepts and terminology From the choices...Ch. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Prob. 10ECh. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 2PACh. 1 - Cost classifications for a service company A...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - Classifying costs The following is a list of costs...Ch. 1 - Prob. 3PBCh. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1ADMCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 3ADMCh. 1 - Prob. 4ADMCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...
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