Thornton Manufacturing Company was started on January $1,2018,$ when it acquired $$81,000$ cash by issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $$7,700$ and $$26,400,$respectively. The office furniture had an $8-$year useful life and a zero salvage value. The manufacturing equipment had a $$3,000$ salvage value and an expected useful life of four years. The company paid $$12,000$ for salaries of administrative personnel and $$15,600$ for wages to production personnel. Finally, the company paid $$15,800$ for raw materials that were used to make inventory. All inventory was started and completed during the year. Thornton completed production on $4,900$ units of product and sold $4,000$ units at a price of $$15$ each in $2018.($Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.

Required:

a$.$ determine the total product cost and the average cost per unit of the inventory produced in year $1.$ Round average cost per unit to $2$ decimal places.

b$.$ Determine the amount of cost of goods sold that would appear on the year $1$ income statement. Do not round intermediate calculations.

c$.$ Determine the amount of the ending inventory balance that would appear on the December $31,$ year $1,$ balance sheet. Not round calculations.

d$.$ Determine the amount of net income that would appear on the year $1$ income statement. Not round intermediate calculation.

e$.$ Determine the amount of retained earnings that would appear on December $31,$ year $1$balance sheet.

f$.$ Determine the amount of total assets that would appear on December $31,$ balance sheet. Not round intermediate calculation.

Answer rating: 100% (QA)

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