Incomplete manufacturing expenses, expenses, and marketing information fortwo different situations are as complies with.

You are watching: Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.

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(a)

Indicate the missing amount for each letter.

Case

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2

Direct products used$9,600

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Direct labor5,0008,000
Manufacturing overhead8,0004,000
Total production costs

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16,000
Beginning work-related in process inventory1,000

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Ending occupational in procedure inventory

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3,000
Sales revenue24,500

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Sales discounts2,5001,400
Cost of products manufactured17,00022,000
Beginning finimelted items inventory

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3,300
Goods easily accessible for sale20,000

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Cost of products sold

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Ending finimelted products inventory3,4002,500
Gross profit

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7,000
Operating expenses2,500

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Net income

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5,000

b) Prepare a condensed price of items manaufactures schdule fforCase1

c1) Prepare an Income statement for Case 1

c2) Prepare the existing assets area of the balance sheet forCase1. Assume that in Case 1 the other items in the present assetssection are as follows: Cash $4,000, Receivables (net) $15,000, RawMaterials $600 and Prephelp Expenses $400.


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Homework Answers
Answer #1
Concepts and reason

Cost: The estimated number of assorted costs concerned the manufacturing of the merchandise is cost. The expense which has actually a direct relation to the product is a straight cost. The product which has an indirect relation to the product is an instraight cost. Both prices include the cost of product, labor, and also expenses.


Fundamentals

Direct material: It is just one of the product price which has actually a direct relation to the manufacture of the product. The raw product is the standard necessity to create the finimelted items. The cost of direct product have the right to be straight chargeable to the final product as compared to the instraight product.

Direct labor: It is one of the conversion cost which is required to transdevelop the raw material inventory right into finished goods inventory. Direct labor have the right to be directly traceable to a details product or price facility. In other words, the cost of the workers which is directly involved in the transformation of the raw product right into the finished product.

Manufacturing overheads: It is an indirect cost which is compelled for production. It has the price of instraight material, instraight labor, and instraight costs. The costs such as depreciation on devices, foreguy salary, power prices of the factory are classified under production overhead.

Manufacturing cost: The price and also expenses incurred to produce the inventory are had in production price. It has the prime expense and also manufacturing overheads. The prime price is the first cost incurred on production and it consists of the price of straight product, expense of direct labor and price of straight prices.

Work-in-development inventory: The inventory which has actually been finimelted in manufacturing are work-in-development inventory. The process of production has actually applied to the raw material yet it has actually not been completed. It contains the amount of direct material, straight labor, and also costs which are incurred in the production of this inventory till yet.

Sales: It is the main revenue of the company. Various prices, fixed costs and also adjustment of inventory to be done from the sales revenue. It is computed by multiplying the units sold and marketing price per unit.

Finished products inventory: The inventory which is completed in manufacturing and obtainable for sale. The finiburned items expense includes the prime expense, production overheads, and management overheads.

Gross profit: It is the first profit earned after reducing the cost of inventory sold from the sales. The non-operating costs are not yet lessened from the gross profit.

Operating expenses: The cost and expenses which are required to operate the service and also generate revenue.

Net income: It is the revenue earned by reducing all operating and non-operating costs from the sales revenue. Conversely, non-operating expenses to be deducted from gross profit to recognize net earnings.

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(a.1)

Compute full manufacturing cost of case 1 as offered below:

Totalmanufacturingcost=(Directmaterial)+(Directlabor)+(Manufacturingoverhead)=$9,600+$5,000+$8,000=$22,600eginarrayc\ mTotal manufacturing cost = left( mDirect material ight) + left( mDirect labor ight) + left( mManufacturing overhead ight)\\ = $ 9,600 + $ 5,000 + $ 8,000\\ = $ 22,600\endarrayTotalmanufacturingcost=(Directmaterial)+(Directlabor)+(Manufacturingoverhead)=$9,600+$5,000+$8,000=$22,600​

(a.2)

Compute the ending work-in-development (WIP) inventory of situation 1 as given below:

Costofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)EndingWIPinventory=(Totalmanufacturingcost)+(BeginningWIPinventory)−(Costofgoodsmanufactured)=$22,600+$1,000−$17,000=$6,600eginarrayc\ mCost of goods manufactured = left( mTotal manufacturing cost ight) + left( mBeginning WIP inventory ight)\\ - left( mEnding WIP inventory ight)\\ mEnding WIP inventory = left( mTotal manufacturing cost ight) + left( mBeginning WIP inventory ight)\\ - left( mCost of items manufactured ight)\\ = $ 22,600 + $ 1,000 - $ 17,000\\ = $ 6,600\endarrayCostofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)EndingWIPinventory=(Totalmanufacturingcost)+(BeginningWIPinventory)−(Costofgoodsmanufactured)=$22,600+$1,000−$17,000=$6,600​

(a.3)

Compute the beginning inventory of finished products in case 1.

Beginningfinishedgoodsinventory=(Goodsavailableforsale)−(Costofgoodsmanufactured)=$20,000−$17,000=$3,000eginarrayc\ mBeginning finimelted goods inventory = left( mGoods available for sale ight)\\ - left( mCost of goods manufactured ight)\\ = $ 20,000 - $ 17,000\\ = $ 3,000\endarrayBeginningfinishedgoodsinventory=(Goodsavailableforsale)−(Costofgoodsmanufactured)=$20,000−$17,000=$3,000​

(a.4)

Compute the price of inventory marketed in case 1 as given below:

Costofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$20,000−$3,400=$16,600eginarrayc\ mCost of items sold = left( mGoods available for sale ight) - left( mEnding finished products inventory ight)\\ = $ 20,000 - $ 3,400\\ = $ 16,600\endarrayCostofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$20,000−$3,400=$16,600​

(a.5)

Compute gross profit of case 1 as provided below:

Grossprofit=(Salesrevenue)−(Salesdiscount)−(Costofgoodssold)=$24,500−$2,500−$16,600=$5,400eginarrayc\ mGross profit = left( mSales revenue ight) - left( mSales discount ight) - left( mCost of goods sold ight)\\ = $ 24,500 - $ 2,500 - $ 16,600\\ = $ 5,400\endarrayGrossprofit=(Salesrevenue)−(Salesdiscount)−(Costofgoodssold)=$24,500−$2,500−$16,600=$5,400​

(a.6)

Compute net income of case 1 as given below:

Netincome=Grossprofit−Operatingexpenses=$5,400−$2,500=$2,900eginarrayc\ mNet income = mGross profit - mOperating expenses\\ = $ 5,400 - $ 2,500\\ = $ 2,900\endarrayNetincome=Grossprofit−Operatingexpenses=$5,400−$2,500=$2,900​

(a.7)

Compute start work-in-progress inventory of case 2 as given below:

Costofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)BeginningWIPinventory=(Costofgoodsmanufactured)−(Totalmanufacturingcost)+(EndingWIPinventory)=$22,000−$16,000+$3,000=$9,000eginarrayc\ mCost of products manufactured = left( mTotal production cost ight) + left( mBeginning WIP inventory ight)\\ - left( mEnding WIP inventory ight)\\ mBeginning WIP inventory = left( mCost of goods manufactured ight) - left( mTotal manufacturing cost ight)\\ + left( mEnding WIP inventory ight)\\ = $ 22,000 - $ 16,000 + $ 3,000\\ = $ 9,000\endarrayCostofgoodsmanufactured=(Totalmanufacturingcost)+(BeginningWIPinventory)−(EndingWIPinventory)BeginningWIPinventory=(Costofgoodsmanufactured)−(Totalmanufacturingcost)+(EndingWIPinventory)=$22,000−$16,000+$3,000=$9,000​

(a.8)

Determine the price of items available for sale of case 2 as provided below:

Goodsavailableforsale=(Costofgoodsmanufactured)+(Beginningfinishedgoodsinventory)=$22,000+$3,300=$25,300eginarrayc\ mGoods easily accessible for sale = left( mCost of items manufactured ight)\\ + left( mBeginning finimelted goods inventory ight)\\ = $ 22,000 + $ 3,300\\ = $ 25,300\endarrayGoodsavailableforsale=(Costofgoodsmanufactured)+(Beginningfinishedgoodsinventory)=$22,000+$3,300=$25,300​

(a.9)

Determine the cost of products offered in instance 2 as given below:

Costofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$25,300−$2,500=$22,800eginarrayc\ mCost of products sold = left( mGoods available for sale ight) - left( mEnding finimelted goods inventory ight)\\ = $ 25,300 - $ 2,500\\ = $ 22,800\endarrayCostofgoodssold=(Goodsavailableforsale)−(Endingfinishedgoodsinventory)=$25,300−$2,500=$22,800​

(a.10)

Compute the amount of sales revenue of situation 2 as provided below:

Salesrevenue=(Costofgoodssold)+(Salesdiscount)+(Grossprofit)=$22,800+$1,400+$7,000=$31,200eginarrayc\ mSales revenue = left( mCost of goods sold ight) + left( mSales discount ight) + left( mGross profit ight)\\ = $ 22,800 + $ 1,400 + $ 7,000\\ = $ 31,200\endarraySalesrevenue=(Costofgoodssold)+(Salesdiscount)+(Grossprofit)=$22,800+$1,400+$7,000=$31,200​

(a.11)

Determine operating prices of instance 2 as provided below:

Operatingexpenses=Grossprofit−Netincome=$7,000−$5,000=$2,000eginarrayc\ mOperating expenses = mGross profit - mNet income\\ = $ 7,000 - $ 5,000\\ = $ 2,000\endarrayOperatingexpenses=Grossprofit−Netincome=$7,000−$5,000=$2,000​

(b)

Prepare the condensed price of products produced for instance 1 as given below:

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Prepare the condensed expense of products made for instance 1 making use of spreadsheet formulas as offered below:

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(c.1)

Prepare the income statement for instance 1 as offered below:

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Prepare the income statement for situation 1 utilizing spreadsheet formulas as offered below:

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(c.2)

Prepare the section of current assets for case 1 as offered below:

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Prepare the area of existing assets for case 1 using spreadsheet formulas as given below: