The information that follows is from Manufacturing Company's trial balance. Debit Credit Cash 34,000 Accounts receivable 27,000
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Question:
The information that follows is from Manufacturing Company's trial balance.
Debit | Credit | |
Cash | 34,000 | |
Accounts receivable | 27,000 | |
Materials Inventory, ending | 31,000 | |
Work in Process Inventory, ending | 47,900 | |
Finished Goods Inventory, ending | 54,800 | |
Factory Supplies | 5,700 | |
Small Tools | 9,330 | |
Land | 160,000 | |
Accumulated Depreciation - Factory Building | 575,000 | |
Factory Building | 199,000 | |
Accumulated Depreciation - Factory Equipment | 310,000 | |
Factory Equipment | 137,000 | |
Patents | 33,500 | |
Accounts Payable | 26,900 | |
Insurance Premiums Payable | 6,700 | |
Income Taxes Payable | 41,500 | |
Mortage Payable | 343,000 | |
Common Stock | 200,000 | |
Retained Earnings | 334,130 | |
1,288,230 | 1,288,230 |
Required
1. Manufacturing organizations use asset accounts that are not needed by retail organizations.
a. List the titles of the asset accounts that are specifically related to manufacturing organizations.
b. List the titles of the asset, liability, and equity accounts that you would see on the balance sheets of both manufacturing and retail organizations.
2. Assuming that the following information reflects the results of operations for the year, calculate the
(a) Gross margin,
(b) Cost of goods sold,
(c) Cost of goods available for sale,
(d) Cost of goods manufactured:
Operating income | $138,130 |
Operating expenses | 53,670 |
Sales | 500,000 |
Finished goods inventory, beginning | 50,900 |
Finished goods inventory, ending | 54,800 |
Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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