a)
Introduction: Cost of goods manufactured refers to the overall
To calculate: The cost of goods manufactured as on December 31, 2020.
b)
Introduction: An income statement is prepared by the business organizations to know how much amount of gross profit or net profit they earn during the year. An income statement's objective is to display a company's financial success over a specific time frame.
To prepare: The income statement through gross profit.
Introduction: The
To Present: The ending inventory in the balance sheet as on December 31, 2020.
Introduction: The balance sheet of an organization shows the financial situation as of a particular date. The balance sheet is used by the investors, and management to assess the financial position of the company. To state: The difference between the balance sheet and income statement of a merchandising company and manufacturing company.
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EBK ACCOUNTING PRINCIPLES
- Which of the following represents the components of the income statement for a manufacturing business? A. Sales Revenue - Cost of Goods Sold = gross profit B. Service Revenue - Operating Expenses = gross profit C. Service Revenue - Cost of Goods Manufactured = gross profit D. Sales Revenue - Cost of Goods Manufactured = gross profitarrow_forwardWhich of the following represents the components of the income statement for a service business Sales Revenue - Cost of Goods Sold = gross profit Service Revenue - Operating Expenses = operating income Sales Revenue - Cost of Goods Manufactured = gross profit Service Revenue - Cost of Goods Purchased = gross profitarrow_forwardComputing cost of goods sold and operating income, merchandising company Consider the following partially completed income statements for merchandising companies and compute the missing amounts:arrow_forward
- Which of the following represents the components of the income statement for a merchandising business? a.Service Revenue – Operating Expenses = gross profit b.Sales Revenue – Cost of Goods Sold = gross profit c.Service Revenue – Cost of Goods Purchased = gross profit d.Sales Revenue – Cost of Goods Manufactured = gross profitarrow_forwardTwo categories of expenses for merchandising companies are Select one: a. cost of goods sold and financing expenses. b. operating expenses and financing expenses. c. sales and cost of goods sold. d. cost of goods sold and operating expensesarrow_forward"In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period." This statement is (false). What is the correct statement with an explanation, please?arrow_forward
- The following information is available for Robstown Corporation for 20Y8:Please see the attachement:Instructions1. Prepare the statement of cost of goods manufactured.2. Prepare the income statement.arrow_forward(a) How are the components of revenues and expenses different for a merchandising company? (b) Explain the income measurement process of a merchandising company.arrow_forwardOn the income statement of a merchandising company, interest income and interest expense are reported: Question 8 options: A) As part of cost of goods sold B) By offsetting interest income and interest expense and showing the excess as an operating revenue or expense C) By showing interest income as additional sales revenue and interest expense as an operating expense D) As separate items of other income and expense below the net operating income or lossarrow_forward
- 5. Cost of goods sold A only appears on merchandising companies' income statements b. only appears on manufacturing companies' income statements. C. appears on both manufacturing and merchandising companies income statements. d. is caloulated exactly the same for merchandising and manufacturing companies.arrow_forward"In a contribution format income statement for a merchandising company, the cost of goods sold reports the product costs attached to the merchandise sold during the period." This statement is false. What is the correct statement with an explanation of the answer, please?arrow_forwardCompanies that sell products and goods will have inventory and cost of goods sold accounts. The basic cost of goods sold equation is: Beginning Inventory + Purchases – Ending Inventory = Cost of Goods Sold The ending inventory of one period is the beginning inventory of the next period. Businesses that offer services do not normally sell products as their primary business activity but may sell them to supplement their services. What additional accounts would you expect to find in a manufacturing firm and how do they relate to the cost of goods sold?arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub