ACCT 1A Lecture Notes - Lecture 5: Financial Statement, Income Statement, Historical Cost

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amaranthgrasshopper262

25 Aug 2020

School

Irvine Valley College

Department

Accounting

Course

ACCT 1A

Professor

Bradshaw

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Document Summary

Held for sale in the ordinary course of business; In the process of production for such sale, or; In the form of materials/supplies to be consumed in the production process or in rendering of services. inventory. Inventory types: raw materials, work in progress, finished goods inventory, merchandise. Cost of inventory includes costs of purchase, costs of conversion, and other costs. Recall the cost flows: incurred in bringing the inventories to their present location and condition. Merchandise inventory cost of goods sold; Raw material + labour + overhead work in progress finished goods cogs. Opening inventory + purchases = goods available for sale. Goods available for sale ending inventory = cost of goods sold. Fifo leads to highest ending inventory, highest gross profit, highest net profit and lowest cogs; Lifo leads to lowest ending inventory, lowest gross profit, lowest net profit and highest cogs. Weighted average results fall between fifo and lifo. Recall overstatement of ending inventory will lead to:

Related Questions

Pirkl Corporation has providedthe following data for the month of March:

Inventories	Beginning		Ending
Raw materials	$	24,000	$	39,000
Work in process	$	13,000	$	20,000
Finished goods	$	46,000	$	35,000

Additional Information:


Raw materialspurchases	$	78,000
Direct laborcost	$	84,000
Manufacturingoverhead cost incurred	$	43,000
Indirect materialsincluded in manufacturing overhead cost incurred	$	6,400
Manufacturingoverhead cost applied to work in process	$	44,600

Required:
Prepare a Schedule ofCost of Goods Manufactured and a Schedule of Cost of Goods Sold.(Input all amounts as positive values. Omit the "$" sign inyour response.)

Schedule of Cost of Goods Manufactured
Directmaterials:
(Click to select)Beginning work inprocess inventoryBeginning finished goods inventoryEnding rawmaterials inventoryBeginning materials inventoryEnding work inprocess inventory	$
(Click to select)DeductAdd : (Clickto select)Ending work in process inventoryBeginning work in processinventoryFinished goods inventory, beginningPurchases of rawmaterialsRaw materials inventory, ending

Raw materials available for use
(Click to select)DeductAdd : (Clickto select)Ending work in process inventoryPurchases of rawmaterialsBeginning materials inventoryEnding raw materialsinventoryBeginning work in process inventory

Raw materials used in production
(Click to select)DeductAdd : (Clickto select)Beginning work in process inventoryindirect materialsincluded in manufacturing overhead incurredRaw materials inventory,endingEnding work in process inventoryRaw materials inventory,beginning
(Click toselect)Direct laborDirect materialsIndirect materialsIndirectlaborPurchase of raw materials		$
(Click to select)Rawmaterials inventory, endingEnding work in process inventoryRawmaterials inventory, beginningDirect laborPurchases of rawmaterials
(Click toselect)Manufacturing overhead applied to work in processinventoryBeginning work in process inventoryPurchases of rawmaterialsRaw materials inventory, beginningRaw materials inventory,ending

Total manufacturingcosts
(Click toselect)AddDeduct : (Click to select)Raw materials inventory,beginningRaw materials inventory, endingPurchases of rawmaterialsEnding work in process inventoryBeginning work in processinventory


(Click toselect)DeductAdd : (Click to select)Beginning work in processinventoryRaw materials inventory, beginningRaw materials inventory,endingPurchases of raw materialsEnding work in processinventory

Cost of goodsmanufactured		$

Schedule of Cost of Goods Sold
(Click toselect)Cost of goods manufacturedCost of goods available forsaleFinished goods inventory, endingOverapplied overheadFinishedgoods inventory, beginning	$
(Click toselect)DeductAdd : (Click to select)Unadjusted cost of goodssoldOverapplied overheadCost of goods manufacturedCost of goodsavailable for saleUnderapplied overhead

(Click toselect)Unadjusted cost of goods soldCost of goods available forsaleCost of goods manufacturedFinished goods inventory,beginningFinished goods inventory, ending
(Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedEnding finished goods inventoryUnderappliedoverheadCost of goods available for sale

(Click toselect)Finished goods inventory, beginningUnderappliedoverheadFinished goods inventory, endingUnadjusted cost of goodssoldCost of goods manufactured
(Click toselect)AddDeduct : (Click to select)Overapplied overheadCost ofgoods manufacturedUnderapplied overheadFinished goods inventory,endingCost of goods available for sale

Adjusted cost ofgoods sold	$

sangriaporpoise205

Determine the missing amounts in each of the following independent cases. Case A Case B Case C $240,000 7,500 15,000 Sales Beginning inventory, raw material Ending inventory, raw material Purchases of raw material Direct material used Direct labor Manufacturing overhead Total manufacturing costs Beginning inventory, work in process Ending inventory, work in process Cost of goods manufactured Beginning inventory, finished goods Cost of goods available for sale Ending inventory, finished goods Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income tax expense Net income 60,000 180,000 200,000 140,000 255,000 285,000 300,000 62,500 80,000 170,000 500,000 1,040,000 1,035,000 60,000 105,000 70,000 2,500 1,050,000 100,000 175,000 120,000 185,000 12,500 1,090,000 510,000 990,000 510,000 225,000 300,000 80,000 45,000 135,000 27,500

orangeraven660

Tenneson Corporationâs cost of goods manufactured for the just completed month was $151,000 and its inventories were as follows:

	Beginning		Ending
Work in process inventory	$	63,000	$	66,000
Finished goods inventory	$	34,000	$	48,000

How much was the cost of goods available for sale on the Schedule of Cost of Goods Sold?

aquamarineplatypus322

ACCT 1A Lecture Notes - Lecture 5: Financial Statement, Income Statement, Historical Cost

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