Question 1) Billy Bob's Bikes Corporation is having some issues with their accounting department. They hired...

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Question 1) Billy Bob's Bikes Corporation is having some issues with their accounting department. They hired some accountants who got their educations at an institution other than Eastern Illinois University. Luckily, Billy Bob found out you were going to Eastern Illinois University and hired you immediately! Billy Bob has asked you to fix the mistakes that the other accountants have made. Below is the information the bad accountants came up with: Sales (45 bikes) Less operating expenses: Billy Bob's Bikes Corporation Income Statement For the Year Ended August 31, 2024 SE Selling and administrative salaries 57 Advertising OH Cleaning supplies, factory Indirect labor cost AE Depreciation, office headquarters OL Direct labor costs DM Raw materials purchased $ 107,000 200,000 $ 1,008,800 6,000 135,000 18,000 80,000 335,000 Oft Maintenance, factory 47,000 SE Q Rental cost 60,000 Insurance, factory 9,000 SE O Utilities 40,000 Depreciation, production equipment 75,000 SE Travel, salespersons 60,000 $1,172,000 Net operating loss $ (163,200) Additional information as of August 31, 2024: They began operations on September 1, 2023 and had zero balances in Raw Materials, Work-in-Process, and Finished Goods on that date. They manufactured 56 bikes during the fiscal year and they all cost the same to manufacture. Ending Work-in-Process was determined to be $26,500. Ten percent of the utilities was used at the headquarters. Ending Raw Materials was determined to be $33,300. Eighty percent of the rental cost was used at the factory. Billy Bob really needs to know if his company is doing as bad as the accountants who went to other University's said he's doing. Can you help him out?? Required: 1. Prepare a schedule of cost of goods manufactured for the year in good form, as shown in class. 2. Prepare a corrected income statement for the year in good form, as shown in class. 3. What should Billy Bob do with the accountants who got their educations at institutions not named Eastern Illinois University? Good Form means: show a proper heading, the full statement in detail, and double underline your final answer (similar to what you did in financial accounting for financial statements). Question 1) Billy Bob's Bikes Corporation is having some issues with their accounting department. They hired some accountants who got their educations at an institution other than Eastern Illinois University. Luckily, Billy Bob found out you were going to Eastern Illinois University and hired you immediately! Billy Bob has asked you to fix the mistakes that the other accountants have made. Below is the information the bad accountants came up with: Sales (45 bikes) Less operating expenses: Billy Bob's Bikes Corporation Income Statement For the Year Ended August 31, 2024 SE Selling and administrative salaries 57 Advertising OH Cleaning supplies, factory Indirect labor cost AE Depreciation, office headquarters OL Direct labor costs DM Raw materials purchased $ 107,000 200,000 $ 1,008,800 6,000 135,000 18,000 80,000 335,000 Oft Maintenance, factory 47,000 SE Q Rental cost 60,000 Insurance, factory 9,000 SE O Utilities 40,000 Depreciation, production equipment 75,000 SE Travel, salespersons 60,000 $1,172,000 Net operating loss $ (163,200) Additional information as of August 31, 2024: They began operations on September 1, 2023 and had zero balances in Raw Materials, Work-in-Process, and Finished Goods on that date. They manufactured 56 bikes during the fiscal year and they all cost the same to manufacture. Ending Work-in-Process was determined to be $26,500. Ten percent of the utilities was used at the headquarters. Ending Raw Materials was determined to be $33,300. Eighty percent of the rental cost was used at the factory. Billy Bob really needs to know if his company is doing as bad as the accountants who went to other University's said he's doing. Can you help him out?? Required: 1. Prepare a schedule of cost of goods manufactured for the year in good form, as shown in class. 2. Prepare a corrected income statement for the year in good form, as shown in class. 3. What should Billy Bob do with the accountants who got their educations at institutions not named Eastern Illinois University? Good Form means: show a proper heading, the full statement in detail, and double underline your final answer (similar to what you did in financial accounting for financial statements).

Answer rating: 100% (QA)

Sure lets correct the mistakes and prepare the required financial statements for Billy Bobs Bikes Corporation 1 Schedule of Cost of Goods Manufactured ... View the full answer