Question

In: Accounting

Advertising expense $22,250                                      

Advertising expense $22,250                                       Direct labor $564,500

Depreciation expense – Office Equip $10,440            Income taxes expense $138,700

Depreciation expense – Selling Equip. $ 12,125          Indirect labor $61,000

Depreciation expense – Factory Equip. $37,400          Misc. Production costs $10,400

Factory supervision $123,400                                       Office salaries expense $ 72,875

Factory supplies used (indirect materials) $8,060         Raw Materials purchased $896,375

Factory utilities $39,500                                                 Rent expense- office $25,625

INVENTORIES:                                                              Rent expense- selling space $29,000

Raw Materials, Dec 31, 2018 $42,375                            Rent expense- factory building $95,500

Raw Materials, Dec 31, 2019 $72,430                            Maintenance expense- factory $32,375

Goods-in-Process, Dec 31, 2018 $14,500                      Sales $5,002,000

Goods-in-Process, Dec 31, 2019 $16,100                      Sales discounts $59,375

Finished Goods, Dec 31, 2018 $179,200                       Sales salaries expense $297,300

Finished Goods, Dec 31, 2019 $143,750

  1. Prepare Income Statement

DATE

ACCOUNT NAMES

DEBIT

CREDIT

A

Raw Materials Inventory

             

     Accounts Payable

                    

B

Goods-in-Process Inventory

             

     Raw Materials Inventory

                    

C

Factory Payroll

          

     Cash

                 

D

Goods-in-Process Inventory

              

Factory Overhead

    Factory Payroll

E

Factory Overhead

    Accum. Dep., Factory

    Cash

F

Goods-in-Process Inventory

    Factory Overhead

G

Finished Goods Inventory

    Goods-in-Process Inventory

H

Cost of Goods Sold

    Finished Goods Inventory

I

Factory Overhead

    Cost of Goods Sold

  1. Prepare the following journal entries from the information in the table above. You may complete the journal entries first, then go back and finish filling in the T-accounts in requirement #4 if this helps you work through this problem.

    Record the following transactions:

    1. Purchases of raw materials inventory on account for the year.

    2. Assignment of materials costs to Goods-in-Process Inventory (all materials are

      considered direct).

    3. Payment of Factory Payroll in cash.

    4. Assignment of Factory Payroll to Goods-in-Process Inventory and Factory Overhead.

    5. Record all other Factory Overhead. Assume everything except Depreciation is paid

      in cash.

    6. Assignment of Factory Overhead to Goods-in-Process Inventory, assuming the

      company uses a POHR of 75%

    7. Transfer of goods completed to Finished Goods Inventory.

    8. Recording of Cost of Goods Sold.

    9. Make your adjusting entry for any over- or under-applied Factory Overhead.

Can you please just help me with the Income Statement Please.

Solutions

Expert Solution

Solution :

Income statement:

Income Statement
For the year ended Dec 31 2019
Particular Amount
Income
Sales $        5,002,000
Total A $        5,002,000
Expenses
Cost of good sold (See note 1) $            900,170
Direct Labor $            564,500
Indirect Labor $              61,000
Misc production cost $              10,400
Factory Supervision $            123,400
Factory utilites $              39,500
Factory supplies used (indirect materials) $                8,060
Maintenance expense- Factory $              32,375
Depreciation expense- Factory equip $              37,400
Advertising expense $              22,250
Depreciation expense- Office equip $              10,440
Depreciation expense- Selling equip $              12,125
Sales discounts $              59,375
Sales Salaries expenses $            297,300
Rent expense- Office $              25,625
Rent expense- Selling space $              29,000
Rent expense- factory building $              95,500
Office salaries expense $              72,875
Total B $        2,401,295
Income before taxes (A-B) $        2,600,705
Income tax expenses $            138,700
Income after taxes $        2,462,005

Working Notes:

1. Cost of Sales
Purchases made $896375
Add: Inventory as on Dec,31,2018
Raw Material $42375
Goods in process $14500
Finished goods $179200
Less: Inventory as on Dec,31, 2019 $72430
Goods in process $16100
Finished goods $143750
Cost of Goods sold    $900170   

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

Advertising expense $22,250                                      
Advertising expense $22,250                                       Direct labor $564,500 Depreciation expense – Office Equip $10,440            Income taxes expense $138,700 Depreciation expense – Selling Equip. $ 12,125          Indirect labor $61,000 Depreciation expense – Factory Equip. $37,400          Misc. Production costs $10,400 Factory supervision $123,400                                       Office salaries expense $ 72,875 Factory supplies used (indirect materials) $8,060         Raw Materials purchased $896,375 Factory utilities $39,500                                                 Rent expense- office $25,625 INVENTORIES:                                                              Rent expense- selling space $29,000 Raw Materials, Dec 31, 2018 $42,375                            Rent expense- factory building $95,500 Raw Materials,...
Assignment Six Justifying Advertising Expense Much of the advertising on television these days is for prescription...
Assignment Six Justifying Advertising Expense Much of the advertising on television these days is for prescription drugs, and many people ask me (and others) how the Pharma manufacturers justify buying advertising aimed at people who are suffering from diseases that only a very small percentage of consumers suffer from. These range from severe eczema, which affects 3% of the population, to metastatic breast cancer, which affects .1%, to Non-24 disease which affects .001% of the population. So how does this...
debit credit retained earnings 17150 service revenue 30500 advertising expense 1200 depreciation expense 10750 interest expense...
debit credit retained earnings 17150 service revenue 30500 advertising expense 1200 depreciation expense 10750 interest expense 560 salaries expense 5000 supplies expense 2500 utilities expense 2080 dividends 1000 a   Prepare Sparks’ income statement and statement of retained earnings for the month of June. b   Prepare the appropriate closing entries at 30 June. c   What is the purpose of ‘closing the books’ at the end of an accounting period?
using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense...
using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense - plant 197,000 Direct materials inventory, beginning 33,000 Direct materials inventory, ending 28,000 Direct materials purchases 190,000 Direct labor 345,000 Finished goods inventory, beginning 66,000 Finished goods inventory, ending 43,000 Heat and light for plant 23,000 Indirect labor 128,000 Insurance on plant 44,000 Repairs on plant building 34,000 Sales representatives' salaries 258,000 Sales revenue 1,675,000 Supervisor's salary - plant 106,000 Work-in-process inventory, beginning 14,000...
Income Statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation...
Income Statement data: Advertising expense $ 150,000 Cost of goods sold 3,700,000 Delivery expense 30,000 Depreciation expense-office buildings and equipment 30,000 Depreciation expense-store buildings and equipment 100,000 Income tax expense 140,500 Interest expense 21,000 Interest revenue 30,000 Miscellaneous administrative expense 7,500 Miscellaneous selling expense 14,000 Office rent expense 50,000 Office salaries expense 170,000 Office supplies expense 10,000 Sales 5,313,000 Sales commissions 185,000 Sales salaries expense 385,000 Store supplies expense 21,000 Retained earnings and balance sheet data: Accounts payable $ 194,300...
In which expense category do salaries, rent, insurance, advertising and interest belong?
In which expense category do salaries, rent, insurance, advertising and interest belong? Select one: a. Operating expenses  b. Variable expenses c. Fixed expenses d. Non-operating expenses
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect) a)advertising expense...
Indicate the effect each account has on retained earnings. (increase, decrease, or no effect) a)advertising expense b)Service revenue c) Insurance expense d) Salaries & Wages Expense e) Dividends f) Rent revenue g) Utilities Expense
Materials use in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Prperty taxes on plant...
Materials use in product $120,000 Advertising expense $45,000 Depreciation on plant 60,000 Prperty taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 23,000 Saleries paid to sales clerks 50,000 Sales 600,000 Sales return and allowances 15,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $50,600 at December 31. (a) Compute cost of...
Answer questions 1-5 using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office...
Answer questions 1-5 using the information below: Advertising expenses $ 16,000 Depreciation expense - admin. office 107,000 Depreciation expense - plant 197,000 Direct materials inventory, beginning 33,000 Direct materials inventory, ending 28,000 Direct materials purchases 190,000 Direct labor 345,000 Finished goods inventory, beginning 66,000 Finished goods inventory, ending 43,000 Heat and light for plant 23,000 Indirect labor 128,000 Insurance on plant 44,000 Repairs on plant building 34,000 Sales representatives' salaries 258,000 Sales revenue 1,675,000 Supervisor's salary - plant 106,000 Work-in-process...
A list of accounts for Maple Inc. at 12/31/2017 follows: Accounts Receivable $2,359 Advertising Expense 4,510...
A list of accounts for Maple Inc. at 12/31/2017 follows: Accounts Receivable $2,359 Advertising Expense 4,510 Buildings and Equipment, Net 55,550 Capital Stock 50,000 Cash 590 Depreciation Expense 2,300 Dividends 6,000 Income Tax Expense 3,200 Income Tax Payable 3,200 Interest Receivable 100 Inventory: January 1, 2017 6,400 Inventory: December 31, 2017 7,500 Land 20,000 Net purchases 39,400 Retained Earnings, January 1, 2017 32,550 Salaries Expense 25,600 Salaries Payable 650 Net sales 83,584 Transportation-In 375 Utilities Expense 3,600 MAPLE INC. BALANCE...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT