Scenario 2 - Jack Johnson Jack Johnson operates a small manufacturing business as a sole proprietor. His
Question:
Scenario 2 - Jack Johnson
Jack Johnson operates a small manufacturing business as a sole proprietor. His business, Johnson Rubber, manufactures industrial seals and also makes rubber bands used in packaging. He uses the accrual method of accounting. He incurred the following expenses during the tax year.
Calculate Jack's cost of goods sold. (Disregard UNICAP rules for this problem.)
Calculate Jack's cost of goods manufactured. (Disregard UNICAP rules for this problem.)
Beginning inventory, raw materials Beginning inventory, work-in-process Beginning inventory, finished goods Ending inventory, raw materials Ending inventory, work-in-process Ending inventory, finished goods Purchases, factory
Salaries, factory Salaries, sales Chemicals used in manufacturing process Office supplies Freight-in for raw materials purchased
$ 14,000 $ 20,000 $ 100,000 $ 15,000 $ 12,000 $ 110,000 $ 2,000,000 $ 200,000 $ 50,000 $ 10,000 $ 5,000 $ 3,000
Answer the following question based on the scenario for Jack Johnson. Select the total beginning inventory:
a) $114,000 b) $120,000 c) $134,000 d) $137,000