Question

In: Accounting

Benson Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing...

Benson Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing common stock. Benson immediately purchased office furniture and manufacturing equipment costing $7,000 and $34,400, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,600 salvage value and an expected useful life of four years. The company paid $11,100 for salaries of administrative personnel and $15,700 for wages to production personnel. Finally, the company paid $7,800 for raw materials that were used to make inventory. All inventory was started and completed during the year. Benson completed production on 4,000 units of product and sold 3,050 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.)

Required

  1. Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.)

  2. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round intermediate calculations.)

  3. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not round intermediate calculations.)

  4. Determine the amount of net income that would appear on the 2018 income statement. (Round your answer to the nearest dollar amount.)

  5. Determine the amount of retained earnings that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)

  6. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet. (Round your answer to the nearest dollar amount.)

Solutions

Expert Solution


Related Solutions

Baird Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing common stock. Baird immediately purchased office furniture and manufacturing equipment costing $9,800 and $24,900, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,300 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid...
Solomon Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing...
Solomon Manufacturing Company was started on January 1, 2018, when it acquired $81,000 cash by issuing common stock. Solomon immediately purchased office furniture and manufacturing equipment costing $7,700 and $25,800, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of three years. The company paid $11,200 for salaries of administrative personnel and $15,600 for wages to production personnel. Finally, the company paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $9,100 and $24,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Baird immediately purchased office furniture and manufacturing equipment costing $9,100 and $35,900, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of four years. The company paid $11,500 for salaries of administrative personnel and $15,700 for wages to production personnel. Finally, the company paid...
Campbell Manufacturing Company was started on January 1, 2018, when it acquired $89,000 cash by issuing...
Campbell Manufacturing Company was started on January 1, 2018, when it acquired $89,000 cash by issuing common stock. Campbell immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,500, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $4,000 salvage value and an expected useful life of three years. The company paid $11,600 for salaries of administrative personnel and $15,100 for wages to production personnel. Finally, the company paid...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing...
Vernon Manufacturing Company was started on January 1, 2018, when it acquired $83,000 cash by issuing common stock. Vernon immediately purchased office furniture and manufacturing equipment costing $9,100 and $24,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,500 for salaries of administrative personnel and $15,800 for wages to production personnel. Finally, the company paid...
Rooney Manufacturing Company was started on January 1, 2018, when it acquired $75,000 cash by issuing...
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...
Baird Manufacturing Company was started on January 1, 2018, when it acquired $84,000 cash by issuing...
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...
Fanning Manufacturing Company was started on January 1, 2018, when it acquired $78,000 cash by issuing...
Fanning Manufacturing Company was started on January 1, 2018, when it acquired $78,000 cash by issuing common stock. Fanning immediately purchased office furniture and manufacturing equipment costing $7,700 and $34,300, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of four years. The company paid $11,200 for salaries of administrative personnel and $15,700 for wages to production personnel. Finally, the company paid...
Walton Manufacturing Company was started on January 1, 2018, when it acquired $85,000 cash by issuing...
Walton Manufacturing Company was started on January 1, 2018, when it acquired $85,000 cash by issuing common stock. Walton immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,400, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,000 salvage value and an expected useful life of three years. The company paid $11,800 for salaries of administrative personnel and $15,900 for wages to production personnel. Finally, the company paid...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT