MANAGERIAL ACCOUNTING ACCESS CARD
17th Edition
ISBN: 9781266165276
Author: Garrison
Publisher: MCG
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Chapter 3, Problem 1Q
To determine
The connection between Cost of Goods
Expert Solution & Answer
Answer to Problem 1Q
Solution: “Finished Goods” is the connection between Cost of Goods Manufactured and Cost of Goods Sold.
Explanation of Solution
Cost of Goods Manufactured: It implies the value of inventory that has been produced in a given period.
Cost of Goods Sold: It implies the value of goods that has been sold.
Formula to show the link between the two:
| Particulars | $ |
| Cost of Goods Manufactured | |
| (+) Beginning Inventory in Finished Goods | |
| (-) Closing Inventory in Finished Goods | |
| Cost of Goods Sold |
Conclusion
To conclude, it must be said that connecting link between the two schedules is the net inventory in Finished Goods.
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Provide correct answer the financial accounting question
Income statements for Vernon Company for Year 3 and Year 4 follow:
VERNON COMPANY
Income Statements
Year 4
Year 3
Sales
$201,100
$181,100
Cost of goods sold
143,000
121,000
Selling expenses
21,200
19,200
Administrative expenses
12,100
14,100
Interest expense
3,500
5,500
Total expenses
179,800
159,800
Income before taxes
21,300
21,300
Income taxes expense
Net income
6,300
3,300
$ 15,000
$ 18,000
Required
a. Perform a horizontal analysis, showing the percentage change in each Income statement component between Year 3 and Year 4.
b. Perform a vertical analysis, showing each Income statement component as a percentage of sales for each year.
Complete this question by entering your answers in the tabs below.
Required A Required B
Perform a vertical analysis, showing each income statement component as a percentage of sales for each year.
Note: Percentages may not add exactly due to rounding. Round your answers to 1 decimal place. (i.e., 0.234 should be
entered as 23.4).
Sales
VERNON COMPANY…
Chapter 3 Solutions
MANAGERIAL ACCOUNTING ACCESS CARD
Ch. 3.A - EXERCISE 3A-1 Transaction Analysis LO3-5 Carmen...Ch. 3.A - EXERCISE 3A-2 Transaction Analysis LO3-5 Adams...Ch. 3.A - EXERCISE 3A-3 Transaction Analysis LO3-5 Dixon...Ch. 3.A - PROBLEM 3A-4 Transaction Analysis LO3-5 Morrison...Ch. 3.A - PROBLEM 3A-5 Transaction Analysis LO3-5 Star...Ch. 3.A -
PROBLEM 3A-6 Transaction Analysis LO3-5
Brooks...Ch. 3 - Prob. 1QCh. 3 - Prob. 2QCh. 3 - What is underapplied overhead Overapplied...Ch. 3 - 3-4 Provide two reasons why overhead might be...
Ch. 3 - Prob. 5QCh. 3 - How do you compute the raw materials used in...Ch. 3 - Prob. 7QCh. 3 - How do you compute the cost of goods manufactured?Ch. 3 - Prob. 9QCh. 3 - Prob. 10QCh. 3 - Prob. 1AECh. 3 - Prob. 2AECh. 3 - Prob. 3AECh. 3 - Prob. 4AECh. 3 - Prob. 1F15Ch. 3 - Prob. 2F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 4F15Ch. 3 - Prob. 5F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 7F15Ch. 3 - Prob. 8F15Ch. 3 - Prob. 9F15Ch. 3 - Prob. 10F15Ch. 3 - Bunnell Corporation is a manufacturer that uses...Ch. 3 - Prob. 12F15Ch. 3 - Prob. 13F15Ch. 3 - Prob. 14F15Ch. 3 - Prob. 15F15Ch. 3 - EXERCISE 3-1 Prepare Journal Entries LO3-1 Lamed...Ch. 3 - Prob. 2ECh. 3 - EXERCISE 3-3 Schedules of Cost of Goods...Ch. 3 - EXERCISE 3-4 Underapplied and Overapplied Overhead...Ch. 3 - Prob. 5ECh. 3 - EXERCISE 3-6 Schedules of Cost of Goods...Ch. 3 - (
$
15,000...Ch. 3 - EXERCISE 3-8 Applying Overhead: Journal Entries;...Ch. 3 - Prob. 9ECh. 3 - Prob. 10ECh. 3 -
PROBLEM 3-11: T-Account Analysis of Cost Flows...Ch. 3 - Prob. 12PCh. 3 - PROBLEM 3-13 Schedules of Cost of Goods...Ch. 3 - Prob. 14PCh. 3 -
PROBLEM 3-15 Journal Entries; T-Accounts;...Ch. 3 - Prob. 16PCh. 3 - Prob. 17PCh. 3 - Prob. 18C
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