Homework Help for Accounting

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Accounting deals with the process of recording financial transactions pertaining to a business entity. Accounting involves summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.

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justicekissi567 asked for the first time
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mamarutiru884 asked for the first time
in Accounting·
20 Nov

The following cost data relate to Taylor Products Company for the year ended June 30, 2005.

Direct Materials                                                                      $ 55,600

Direct Labor                                                                                72,400

Factory Overhead                                                                       36,500

Work in process inventory, July 1, 2004                                     38,200

Work in process inventory, June 30, 2005                                  34,800

Required:

  1. Calculate the manufacturing costs for the year.
  2. Calculate the cost of goods manufactured for the year.

 

Ex 2-5: Iowa Products Company accumulated the following data for 2005.

                                                                                    Jan 1, 2005                 Dec 31, 2005

Inventories:

            Finished Goods                                               $ 52,000                      $ 54,000

            Work in Process                                                 29,600                         27,800

            Raw materials                                                    14,200                         15,000

Direct labor                                                                                                        95,000

Raw material purchase            s                                                                                     138,000

Indirect labor                                                                                                      15,300

Indirect materials and supplies                                                                                       10,800

Factory utilities                                                                                                   18,600

Depreciation expense- Factory                                                                                       14,000

Factory rent                                                                                                         18,000

Payroll taxes- Factory wages                                                                                8,100

Repairs and maintenance                                                                                      6,000

Insurance expense- Factory                                                                                  6,800

Miscellaneous factory expenses                                                                            5,200

Sales                                                                                                                  710,000

Sales discount                                                                                                     12,000

Selling expenses                                                                                                  95,600

General expenses                                                                                                75,300

Interest expenses                                                                                                   7,000

Required:

  1. Prepare a statement of cost of goods manufactured.
  2. Prepare an income statement (assume an income tax rate of 25%)

 

 

 

 

 

 

 

 

 

 

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Liked by kalkidananmut OC4883347Lv10 27 Apr 2023 Unlock all answers Get 1 free homework help answer. Unlock Already have an account? Log in   1     Read by 1 p

Ex 2-5: Iowa Products Company accumulated the following data for 2005.

                                                                                    Jan 1, 2005                 Dec 31, 2005

Inventories:

            Finished Goods                                               $ 52,000                      $ 54,000

            Work in Process                                                 29,600                         27,800

            Raw materials                                                    14,200                         15,000

Direct labor                                                                                                        95,000

Raw material purchase            s                                                                                     138,000

Indirect labor                                                                                                      15,300

Indirect materials and supplies                                                                                       10,800

Factory utilities                                                                                                   18,600

Depreciation expense- Factory                                                                                       14,000

Factory rent                                                                                                         18,000

Payroll taxes- Factory wages                                                                                8,100

Repairs and maintenance                                                                                      6,000

Insurance expense- Factory                                                                                  6,800

Miscellaneous factory expenses                                                                            5,200

Sales                                                                                                                  710,000

Sales discount                                                                                                     12,000

Selling expenses                                                                                                  95,600

General expenses                                                                                                75,300

Interest expenses                                                                                                   7,000

Required:

  1. Prepare a statement of cost of goods manufactured.
  2. Prepare an income statement (assume an income tax rate of 25%)

 

 

erson samhankhanLv2 26 Apr 2023   Unlock Already have an account? Log in   Like     Read by 1 person nishareyansh2001Lv10 26 Apr 2023   Unlock Already have an account? Log in   Like     Read by 1 person
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akshiianpalakann asked for the first time
in Accounting·
31 Oct 2023

You have been assigned to examine the financial statements of Mari, Inc. for the year ended December 31, 2023.  You discover the following situations in February 2024.

 

1. On December 31, 2023, Mari, Inc. decided to change the depreciation method on its machinery from double-declining-balance to straight-line.  The Machinery had an original cost of $100,000 when purchased on January 2, 2022. It has a 10-year useful life and $5,300 salvage value.  Depreciation expense recorded prior to 2023 under the double-declining-balance method was $20,000. Mari, Inc. has already recorded 2023 depreciation expense of $16,000. 

 

2. The physical inventory count has been incorrectly counted resulting in the following errors. 

                                          December 2021     Overstated      $7,600

                                           December 2022     Understated    $5,200

                                           December 2023     Overstated    $5,600 

 

3. Mari, Inc. purchased $3,400 of supplies on September 4, 2023, recording a debit to Supplies Expense and credit to Cash.  The Supplies account had a balance of $450 on January 1, 2023.  A count revealed there were $700 on hand on December 31, 2023. No entries have been made to Supplies all year

 

4. In 2023, the company sold equipment for $7,200 that had a book value of $4,200 and originally cost $60,000.  The company credited the proceeds from the sale to the Equipment account. The company made the following entry: 

 

                        Cash                                                           7,200

                                        Gain on Sale of Equipment                    7,200 

 

5. Mari, Inc. has not recorded any depreciation for a machine they purchased on October 1, 2021. They paid $250,000 for the machine which has a salvage value of $10,000 and useful life of 6 years. 

 

6. The company has estimated warranty expense to be 1.8% in the past and made an entry for $145,00 in 2023.  However, the company decided that it should only be 1.6% this year which amounts to $125,000.

 

7. A trademark was acquired January 2, 2022 for $40,000.  No amortization has been recorded since its acquisition.  The maximum allowable amortization period is 10 years

 

8. A $24,000 insurance premium was paid on September 1, 2022, for a six month policy that expires on February 28, 2023, was charged to insurance expense in 2022

 

9. In July 2021, a competitor company filed a patent-infringement suit against Jordan, Inc. claiming damages of $140,000.  In December 2021 the company's legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court's award to the competitor is $85,000.  

 

                      The company made the following entry in 2023. 

                               Patent-infringement Expense           85,000 

                                         Lawsuit Liability                                    85,000

 

10. Mari, Inc. has not accrued commissions payable at the end of each of the last 3 years, as follows. Salaries are expensed when paid the 1st week of January in 2024.

                                          December 2021        $3,800 

                                           December 2022        $5,300 

                                           December 2023        $4,200

 

Reported Net Income is: 

      2021 

$745,000 

      2022 

$720,000 

      2023 

$690,000 

Instructions:

A. Assume the trial balance has been prepared but the books HAVE NOT been closed for 2023. Assuming all amounts are material, prepare journal entries showing the adjustments that are required.  (Ignore income tax considerations).   

 

B. Assume the trial balance has been prepared but the books HAVE been closed for 2023. Assuming all amounts are material, prepare journal entries showing the adjustments that are required.  (Ignore income tax considerations).   

 

C. Put together a schedule correcting net incomes for 2021, 2022 and 2023 assuming the books HAVE NOT been closed for 2023. 

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