Question
In: Accounting
The Ruritanian Chemical Company shows the following account balances for the month of May 2017 in...
The Ruritanian Chemical Company shows the following account balances for the month of May 2017 in Ruritanian dollars (R$). Calculate the cost of goods manufactured for May 2017. Also, prepare an income statement for May 2017. R$ Customer service cost 800 Direct manufacturing labour 5000 Depreciation plant and equipment 3000 Revenue 51000 Marketing and advertising 1800 Direct materials inventory 1.5.17 3000 Finished goods inventory 31.5.17 6000 Plant repairs and maintenance 3400 Plant utilities 5600 Direct material purchases 7000 Work in progress inventory 31.5.17 4000 Fire insurance plant 800 Indirect materials used 1000 General administrative costs 3000 Depreciation plant building 2000 Work in progress inventory 1.5.17 500 Finished goods inventory 1.5.17 2000 Direct materials inventory 31.5.17 1000 Indirect manufacturing labour 1200 Plant supervision 4000 Miscellaneous plant overhead 1000
Solutions
Expert Solution
| Calaculation of cost of goods manufactured in the month of May-2017 | ||
| Particulars | Amount ($) | Amount ($) |
| Direct Materials | $ 9,000.00 | |
| Direct material purchases | $ 7,000.00 | |
| ADD- Opening Direct materials inventory | $ 3,000.00 | |
| LESS- Closing Direct materials inventory | $(1,000.00) | |
| Direct Labour | $ 5,000.00 | |
| Prime cost | $ 14,000.00 | |
| Factory Over heads | $ 22,000.00 | |
| Depreciation plant and equipment | $ 3,000.00 | |
| Depreciation plant building | $ 2,000.00 | |
| Plant repairs and maintenance | $ 3,400.00 | |
| Fire insurance plant | $ 800.00 | |
| Indirect materials used | $ 1,000.00 | |
| Indirect manufacturing labour | $ 1,200.00 | |
| Plant utilities | $ 5,600.00 | |
| Miscellaneous plant overhead | $ 1,000.00 | |
| Plant supervision | $ 4,000.00 | |
| Factory Cost | $ 36,000.00 | |
| Work in progress inventory | $ (3,500.00) | |
| ADD- Opening Work in progress inventory | $ 500.00 | |
| LESS- Closing Work in progress inventory | $(4,000.00) | |
| Finished goods | $ (4,000.00) | |
| ADD- Opening Finished goods inventory | $ 2,000.00 | |
| LESS- Closing Finished goods inventory | $(6,000.00) | |
| Cost of Production | $ 28,500.00 | |
| Cost of goods sold | $ 28,500.00 | |
Above is the Cost sheet , Cost of Production is manufacturing cost for the month of May-2017
| Income statement for the month of May-2017 | ||
| Particulars | Amount ($) | Amount ($) |
| A.Revenue | $ 51,000.00 | |
| B.Expenses | $ 34,100.00 | |
| Cost of goods sold | $ 28,500.00 | |
| Customer service cost | $ 800.00 | |
| Marketing and advertising | $ 1,800.00 | |
| General Administration Costs | $ 3,000.00 | |
| Profit (A - B) | $ 16,900.00 | |
ekkarill92 answered 2 years agoRelated Solutions
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(10,000
)
(21,500
)
Accounts receivable
33,000
83,000
Accumulated depreciation—buildings
(24,000
)
(29,000
)
Accumulated depreciation—equipment
0
(5,400
)
Bonds payable—due 2020
(54,000
)
(54,000
)
Buildings
113,000
94,500
Cash
39,000
8,400
Common stock
(63,000
)
(76,000
)
Depreciation expense
0
19,000
Dividends (10/1/17)
0
36,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017 December 31, 2017
Accounts payable (18,000) (32,500)
Accounts receivable 51,000 101,000
Accumulated depreciation—buildings (42,000) (47,000)
Accumulated depreciation—equipment 0 (7,200)
Bonds payable—due 2020 (61,000) (61,000)
Buildings 131,000 103,500
Cash 57,000 10,200
Common stock (66,000) (76,000)
Depreciation expense 0 37,000
Dividends (10/1/17) 0 54,000
Equipment 0 61,000
Gain on sale of building 0 (8,200)...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(24,000
)
(31,500
)
Accounts receivable
45,000
95,000
Accumulated depreciation—buildings
(36,000
)
(41,000
)
Accumulated depreciation—equipment
0
(6,600
)
Bonds payable—due 2020
(55,000
)
(55,000
)
Buildings
125,000
100,500
Cash
51,000
9,600
Common stock
(60,000
)
(71,000
)
Depreciation expense
0
31,000
Dividends (10/1/17)
0
48,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(16,000
)
(27,500
)
Accounts receivable
53,000
103,000
Accumulated depreciation—buildings
(44,000
)
(49,000
)
Accumulated depreciation—equipment
0
(7,400
)
Bonds payable—due 2020
(63,000
)
(63,000
)
Buildings
133,000
104,500
Cash
59,000
10,400
Common stock
(68,000
)
(80,000
)
Depreciation expense
0
39,000
Dividends (10/1/17)
0
56,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(13,000
)
(19,500
)
Accounts receivable
41,000
91,000
Accumulated depreciation—buildings
(32,000
)
(37,000
)
Accumulated depreciation—equipment
0
(6,200
)
Bonds payable—due 2020
(51,000
)
(51,000
)
Buildings
121,000
98,500
Cash
47,000
9,200
Common stock
(71,000
)
(85,000
)
Depreciation expense
0
27,000
Dividends (10/1/17)
0
44,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(13,000
)
(19,500
)
Accounts receivable
41,000
91,000
Accumulated
depreciation—buildings
(32,000
)
(37,000
)
Accumulated
depreciation—equipment
0
(6,200
)
Bonds payable—due 2020
(51,000
)
(51,000
)
Buildings
121,000
98,500
Cash
47,000
9,200
Common stock
(71,000
)
(85,000
)
Depreciation expense
0
27,000
Dividends (10/1/17)
0
44,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(20,000
)
(25,500
)
Accounts receivable
49,000
99,000
Accumulated depreciation—buildings
(40,000
)
(45,000
)
Accumulated depreciation—equipment
0
(7,000
)
Bonds payable—due 2020
(59,000
)
(59,000
)
Buildings
129,000
102,500
Cash
55,000
10,000
Common stock
(64,000
)
(75,000
)
Depreciation expense
0
35,000
Dividends (10/1/17)
0
52,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(10,000
)
(21,500
)
Accounts receivable
33,000
83,000
Accumulated
depreciation—buildings
(24,000
)
(29,000
)
Accumulated
depreciation—equipment
0
(5,400
)
Bonds payable—due 2020
(54,000
)
(54,000
)
Buildings
113,000
94,500
Cash
39,000
8,400
Common stock
(63,000
)
(76,000
)
Depreciation expense
0
19,000
Dividends (10/1/17)
0
36,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts
payable
(18,000
)
(24,000
)
Accounts
receivable
35,000
79,000
Accumulated
depreciation—buildings
(20,000
)
(25,000
)
Accumulated
depreciation—equipment
0
(5,000
)
Bonds
payable—due 2020
(50,000
)
(50,000
)
Buildings
118,000
97,000
Cash
35,000
8,000
Common
stock
(70,000
)
(80,000
)
Depreciation
expense
0
15,000
Dividends
(10/1/17)
0
32,000
Equipment...
The following account balances are for the Agee Company as of January 1, 2017, and December...
The following account balances are for the Agee Company as of
January 1, 2017, and December 31, 2017. All amounts are denominated
in kroner (Kr).
January 1, 2017
December 31, 2017
Accounts payable
(15,000
)
(25,000
)
Accounts receivable
54,000
104,000
Accumulated
depreciation—buildings
(45,000
)
(50,000
)
Accumulated
depreciation—equipment
0
(7,500
)
Bonds payable—due 2020
(64,000
)
(64,000
)
Buildings
134,000
105,000
Cash
60,000
10,500
Common stock
(69,000
)
(82,000
)
Depreciation expense
0
40,000
Dividends (10/1/17)
0
57,000
Equipment...
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