Question

Baird Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing common stock. Baird immediately purchased office furniture and manufacturing equipment costing $9,800 and $35,100, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,500 salvage value and an expected useful life of four years. The company paid $11,700 for salaries of administrative personnel and $15,300 for wages to production personnel. Finally, the company paid $8,780 for raw materials that were used to make inventory. All inventory was started and completed during the year. Baird completed production on 4,100 units of product and sold 3,140 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.)

a. total product cost? average cost per unit?

b. cost of good sold?

c. ending inventory?

d. net income?

e. retained earning?

f. total asset?

Answer 1