Question

Rooney Manufacturing Company was started on January 1, 2018, when it acquired $75,000 cash by issuing common stock. Rooney immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,600, 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 three years. The company paid $11,500 for salaries of administrative personnel and $15,400 for wages to production personnel. Finally, the company paid $9,580 for raw materials that were used to make inventory. All inventory was started and completed during the year. Rooney completed production on 4,300 units of product and sold 3,320 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 goods sold c. Ending inventory d. Net income e. Retained earnings f. Total assets

Answer 1