QUESTION ONE BlueScope Steel Limited, an Australian flat product steel producer, closes its books and prepares...

 

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QUESTION ONE BlueScope Steel Limited, an Australian flat product steel producer, closes its books and prepares financial statements at the end of each month. The statement of cost of goods sold for September follows: BlueScope Steel Limited Statement of Cost of Goods Sold For the Month Ended September 30 Beginning Finished Goods Inventory $ 50,000 Cost of goods manufactured 790,000 Cost of goods available for sale 840,000 Less: Ending Finished Goods Inventory 247,000 Cost of goods sold $ 593,000 Additional Information: • Of the utilities, 80 percent relates to manufacturing the steel; the remaining 20 percent relates to the sales and administrative function. • All rent is for the office building. • Property taxes are assessed on the manufacturing plant. • Of the insurance, 60 percent is related to manufacturing the steel, the remaining 40 percent is related to the sales and administrative functions. • The company manufactured 7,825 tons of steel during September. The inventory balances at October 31, follow: Materials inventory Work-in-Process Inventory Finished goods Inventory 23,000 220,000 175,000 BlueScope is subject to 30% company tax. BlueScope Steel Limited Pre-closing Account Balances October 31. Cash and Marketable securities 54,000 210,000 1,140,000 70,000 582,000 100,000 930,000 1,488,000 1,112,000 510,000 1,100,000 260,000 90,000 122,000 42,000 135,000 9,000 60,000 20,000 54,000 6,000 Accounts and notes receivable Property, plant, and equipment (net) Accounts, notes, and taxes payable Bonds Payable Paid-in capital Retained earnings Sales Cost of goods sold Purchases of direct materials Total Manufacturing Cost Direct Labor Indirect factory labor Office salaries Sales salaries Utilities Rent Property tax Insurance Depreciation Office supplies expense REQUIRED: A. Prepare a Schedule of Cost of Goods Manufactured for October. В. Prepare a Schedule of Cost of Goods Sold for October. C. Prepare an Income Statement for the month of October. QUESTION ONE BlueScope Steel Limited, an Australian flat product steel producer, closes its books and prepares financial statements at the end of each month. The statement of cost of goods sold for September follows: BlueScope Steel Limited Statement of Cost of Goods Sold For the Month Ended September 30 Beginning Finished Goods Inventory $ 50,000 Cost of goods manufactured 790,000 Cost of goods available for sale 840,000 Less: Ending Finished Goods Inventory 247,000 Cost of goods sold $ 593,000 Additional Information: • Of the utilities, 80 percent relates to manufacturing the steel; the remaining 20 percent relates to the sales and administrative function. • All rent is for the office building. • Property taxes are assessed on the manufacturing plant. • Of the insurance, 60 percent is related to manufacturing the steel, the remaining 40 percent is related to the sales and administrative functions. • The company manufactured 7,825 tons of steel during September. The inventory balances at October 31, follow: Materials inventory Work-in-Process Inventory Finished goods Inventory 23,000 220,000 175,000 BlueScope is subject to 30% company tax. BlueScope Steel Limited Pre-closing Account Balances October 31. Cash and Marketable securities 54,000 210,000 1,140,000 70,000 582,000 100,000 930,000 1,488,000 1,112,000 510,000 1,100,000 260,000 90,000 122,000 42,000 135,000 9,000 60,000 20,000 54,000 6,000 Accounts and notes receivable Property, plant, and equipment (net) Accounts, notes, and taxes payable Bonds Payable Paid-in capital Retained earnings Sales Cost of goods sold Purchases of direct materials Total Manufacturing Cost Direct Labor Indirect factory labor Office salaries Sales salaries Utilities Rent Property tax Insurance Depreciation Office supplies expense REQUIRED: A. Prepare a Schedule of Cost of Goods Manufactured for October. В. Prepare a Schedule of Cost of Goods Sold for October. C. Prepare an Income Statement for the month of October.

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SOLUTION Statement showing the cost of goods manufactured during October SCHEDULE OF COST OF GOODS M... View the full answer