ACCT 2000 Chapter : Ch 5 Notes

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azuremammoth471

15 Mar 2019

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Merchandising companies: buy and sell goods (products, primary source of revenue is ___sales revenue___ __cogs_ is the total cost of goods sold during the period. Ending inventory becomes beginning inventory of the next period. Companies use either a ___perpetual_ inventory system or a __periodic__ inventory system account for inventory. Periodic method!!: calculation of cost of goods sold example: Cindy"s boutique had ,000 of inventory on hand at the start of the year. During the year, she purchased ,000 of inventory. At year-end, she counted inventory with a cost of ,000 on hand. Less: ending inventory ___8000-determined by a physical count__ We will learn how to record inventory related transactions using the perpetual system. Can be made using cash or credit ( accounts payable) Purchase invoice should support each credit purchase. Sauk stereo (the purchaser) would record this purchase as: Assume upon delivery of the goods on may 6, sauk stereo pays haul-it freight.

Related Questions

Period Ending	February 2 2007	February 1 2008
Total Revenue	57,420,000	61,133,000
Cost Of Revenue	47,904,000	49,462,000
Gross Profit	9,516,000	11,671,000
Operating Expenses
Research and Development	498,000	610,000
Selling, general, Administrative	5,948,000	7,538,000
Total Operating expenses	6,446,000	8,148,000
Operating Income or Loss	3,070,000	3,523,000
Net Income	2,583,000	2,947,000

Estimate the total variable costs for Dell in the Year endingFeb 2 2007?

Estimate the Fixed to Variable cost ratio for Dell for the yearending Feb 1 2008?

Assume the variable COGS is 0.419607 in 2008. Estimate the totalfixed cost of goods sold for that year?

limerat481

Need help completing an income statement!

Trial Balance:

Acc. #	Account Name	Debits	Credits
100	Cash	$ 66,000
110	Accounts receivable	160,000
115	Allowance for doubtful accounts		$ 7,000
120	Inventory	50,000
135	Prepaid insurance	24,750
136	Prepaid advertising	6,000
150	Land	235,000
160	Building	240,000
165	Accumulated depreciation - building		61,500
170	Equipment	150,000
175	Accumulated depreciation - equipment		53,750
190	Notes receivable	155,000
195	Interest receivable	8,590
200	Accounts payable		135,000
215	Interest payable		11,000
219	Income tax payable		12,477
230	Accrued liabilities		42,000
240	Unearned revenue		27,500
250	Notes payable - current portion		20,000
255	Notes payable - long-term portion		80,000
270	Bonds payable		100,000
300	Common stock		500,000
310	Retained earnings		21,000
350	Dividends	5,000
400	Sales		1,337,250
450	Interest revenue		94,590
500	Cost of goods sold	616,000
510	Administrative and general expenses	97,000
515	Insurance expense	2,250
520	Selling expenses	188,000
531	Depreciation expense - building	7,500
532	Depreciation expense - equipment	12,500
550	Interest expense	71,000
599	Income tax expense	12,477
600	Loss on sale of equipment	60,000
910	Loss from operation of discontinued	75,000
910	segment ofbusiness	75,000
915	Loss from disposal of discontinued	261,000
915	segment ofbusiness	261,000
		$ 2,503,067	$ 2,503,067

Income statement: (I've put in some of the numbers butI'm kinda lost with the operating expenses)

Sales		$ 1,337,250
Cost of goods sold		616,000
Gross Profit		721,250
Operating expenses
Selling expenses		188,000
Administrative and generalexpenses



Total operating expenses
Operating Income
Other revenue
Interest Revenue		94,590
Other expense and loss
Interest expense

Total other expense andloss
Income from continuingoperations before income tax
Income tax expense		113,277
Income from continuingoperations		264,313
Discontinued operations:
Loss fromoperations of discontinued segment, net of
	income tax benefit
Loss from disposalof discontinued segment, net of
	income tax benefit
Total loss from discontinuedoperations


* = Line-item is a subtotal,not an account

EPS:

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of May:

1		Rainier Company ($)	Yakima Company ($)
2	Materials inventory, May 1	100,000.00	48,200.00
3	Materials inventory, May 31	(a)	50,000.00
4	Materials purchased	950,000.00	710,000.00
5	Cost of direct materials used in production	938,500.00	(a)
6	Direct labor	2,860,000.00	(b)
7	Factory overhead	1,800,000.00	446,000.00
8	Total manufacturing costs incurred May	(b)	$2,484,200.00
9	Total manufacturing costs	5,998,500.00	2,660,600.00
10	Work in process inventory, May 1	400,000.00	176,400.00
11	Work in process inventory, May 31	382,000.00	(c)
12	Cost of goods manufactured	(c)	2,491,500.00
13	Finished goods inventory, May 1	615,000.00	190,000.00
14	Finished goods inventory, May 31	596,500.00	(d)
15	Sales	9,220,000.00	4,550,000.00
16	Cost of goods sold	(d)	2,470,000.00
17	Gross profit	(e)	(e)
18	Operating expenses	1,000,000.00	(f)
19	Net income	(f)	1,500,000.00

Required:

For both companies, determine the amounts of the missing items (A) through (F), identifying them by letter.
Prepare Yakima Company's statement of cost of goods manufactured for May.
Prepare Yakima Company's income statement for May.

sangriamarten871

ACCT 2000 Chapter : Ch 5 Notes

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