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Sagot :
LAnswer:
A. $ 5.3
B. $ 42,400
C. $ 10,600
D.$4,000
E. $13,600
F. $102,600
Explanation:
A. Calculation to Determine the total product cost and the average cost per unit of the inventory produced in year 1
First step
Total product cost= $ 6,000 + $21,000 + $26,000 = $ 53,000
Second step
Manufacturing equipment depreciation for 1 year = ($40,000 - $4,000)/6
(Manufacturing equipment depreciation for 1 year = $6,000
The average cost per unit = Total product cost / total products = $ 53,000 / 10,000 = $ 5.3
b. Calculation to Determine the amount of cost of goods sold that would appear on the 2018 income statement.
COGS= $ 5.3 * 8,000
COGS = $ 42,400
c. Calculation to Determine the amount of the ending inventory balance that would appear on the December 31, 2018,balance sheet.
The ending inventory balance = $ 5.3 * (10,000 - 8,000)
The ending inventory balance = $ 10,600
d. Calculation to Determine the amount of net income that would appear on the 2018 income statement.
STUART MANUFACTURING COMPANY
Income Statement
Sales (8000 * $9)$72,000
Cost of Goods sold ($42,400)
Gross Margin$29,600
Office furniture depreciation($4,000)
salaries of administrative personnel($12,000)
Net Income$ 13,600
Office furniture depreciation for 1 year =($32,000 - $0)/8
Office furniture depreciation for 1 year= $4,000
e. Calculation to Determine the amount of retained earnings that would appear on the December 31, 2018, balancesheet.
Retain Earnings = $0 + $ 13,600 = $13,600
f. Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.Total Assets = 30,000 + 10,600 + 28,000 + 34,000 = $102,600
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