The information that follows is from Miles Production Company’s trial balance.

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 ............$ 68,000

Operating expenses ............ 40,000

Sales .................. 450,000

Finished goods inventory, beginning...... 60,000

Transcribed Image Text:

Debits Credits Cash 40,000 Accounts Receivable 30,000 Materials Inventory, ending Work in Process Inventory, ending Finished Goods Inventory, ending Production Supplies 41,000 37,000 70,000 5,000 Small Tools 3,000 Land 200,000 Factory Building Accumulated Depreciation-Factory Building Production Equipment Accumulated Depreciation-Production Equipment 600,000 300,000 210,000 100,000 20,000 Patents Accounts Payable Insurance Premiums Payable Income Taxes Payable Mortgage Payable 40,000 6,000 40,000 400,000 Common Stock 300,000 Retained Eamings 70,000 1,256,000 1,256,000