You should now have an understanding of what materials, labor, and overhead costs are involved in manufacturing

Question:

You should now have an understanding of what materials, labor, and overhead costs are involved in manufacturing a product and how these costs are determined. Let’s review Harley-Davidson, Inc., a popular manufacturer of motorcycles, and examine the company’s financial statements, which can be found at investor.harley-davidson.com. Click SEC Filings and Reports, under Groupings Filter, select Annual Filings; then click the 2010 Form 10-K for the period ending December 31, 2010.
1. What was the company’s net income for the year ended December 31, 2010?
2. What is Harley-Davidson’s cost of goods sold for 2010 on the income statement?
3. What was the value of as of December 31, 2010?
4. Is Harley-Davidson, Inc., a manufacturing firm or a merchandising firm?
5. Now that you have learned about job- order and process cost accounting systems, which system do you think Harley- Davidson uses for its motorcycles?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...