Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 9E
Financial statements of a manufacturing firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
- a. Purchased $250,000 of materials.
- b. Used $180,000 of direct materials in production.
- c. Incurred $450,000 of direct labor wages.
- d. Incurred $180,000 of factory
overhead . - e. Transferred $760,000 of work in process to finished goods.
- f. Sold goods for $1,200,000.
- g. Sold goods with a cost of $675,000
- h. Incurred $215,000 of selling expense
- i. Incurred $125,000 of administrative expense
Using the information given, complete the following:
- a. Prepare the January income statement for Sorensen Manufacturing Company.
- b. Determine the inventory balances at the end of the first month of operations.
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Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:
a. Purchased $58,800 of materials.
b. Used $45,300 of direct materials in production.
c. Incurred $67,600 of direct labor wages.
d. Incurred $95,300 of factory overhead.
e. Transferred $158,200 of work in process to finished goods.
f. Sold goods for $282,800.
g. Sold goods with a cost of $125,800.
h. Incurred $72,300 of selling expense.
i. Incurred $31,800 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
Operating expenses:
Total onerating expenses
Financial Statements of a Manufacturing Firm
The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of
digital video monitors:
a. Purchased $68,200 of materials.
b. Used $52,500 of direct materials in production.
c. Incurred $78,400 of direct labor wages.
d. Incurred $110,500 of factory overhead.
e. Transferred $183,500 of work in process to finished goods.
f. Sold goods for $328,000.
g. Sold goods with a cost of $145,900.
h. Incurred $83,900 of selling expense.
i. Incurred $36,800 of administrative expense.
Using the information given, complete the following:
a. Prepare the January income statement for Sorensen Manufacturing Company.
Sorensen Manufacturing Company
Income Statement
For the Month Ended January 31
Operating expenses:
Total operating expenses
b. Determine the inventory balances at the end of the first month of operations.
Sorensen Manufacturing Company
Inventory Balances
For the Month Ended…
Financial statements of a manufacturing firmThe following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:a. Purchased $250,000 of materials.b. Used $180,000 of direct materials in production.c. Incurred $450,000 of direct labor wages.d. Incurred $180,000 of factory overhead.e. Transferred $760,000 of work in process to finished goods.f. Sold goods for $1,200,000.g. Sold goods with a cost of $675,000h. Incurred $215,000 of selling expensei. Incurred $125,000 of administrative expenseUsing the information given, complete the following:a. Prepare the January income statement for Sorensen Manufacturing Company.b. Determine the inventory balances at the end of the first month of operations.
Chapter 1 Solutions
Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - What manufacturing cost term is used to describe...Ch. 1 - Distinguish between prime costs and conversion...Ch. 1 - What is the difference between a product cost and...Ch. 1 - Name the three inventory accounts for a...Ch. 1 - In what order should the three inventories of a...Ch. 1 - What are the three categories of manufacturing...Ch. 1 - How do the manufacturing costs incurred during a...Ch. 1 - How does the Cost of goods sold section of the...
Ch. 1 - Management process Three phases of the management...Ch. 1 - Prob. 2BECh. 1 - Prime and conversion costs Identify the following...Ch. 1 - Product and period costs Identify the following...Ch. 1 - Cost of goods sold, cost of goods manufactured...Ch. 1 - Jakes Cabins is a small motel chain with locations...Ch. 1 - Indicate whether each of the following costs of an...Ch. 1 - Indicate whether the following costs of Procter ...Ch. 1 - Prob. 3ECh. 1 - For apparel manufacturer Abercrombie Fitch, Inc....Ch. 1 - From the choices presented in parentheses, choose...Ch. 1 - Prob. 6ECh. 1 - Classifying costs In a service company A partial...Ch. 1 - Classifying costs The following is a manufacturing...Ch. 1 - Financial statements of a manufacturing firm The...Ch. 1 - Manufacturing company balance sheet Partial...Ch. 1 - Cost of direct materials used in production for a...Ch. 1 - Prob. 12ECh. 1 - Cost of goods manufactured for a manufacturing...Ch. 1 - Income statement for a manufacturing company Two...Ch. 1 - Statement of cost of goods manufactured for a...Ch. 1 - Cost of goods sold, profit margin, and net income...Ch. 1 - Cost flow relationships The following information...Ch. 1 - The following is a list of costs that were...Ch. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of Foothills Medical Centers costs...Ch. 1 - Manufacturing income statement, statement of cost...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Prob. 1PBCh. 1 - The following is a list of costs incurred by...Ch. 1 - A partial list of The Grand Hotels costs follows:...Ch. 1 - Several items are omitted from the income...Ch. 1 - Statement of cost of goods manufactured and income...Ch. 1 - Comfort Plus, Inc., has a hotel with 300 rooms in...Ch. 1 - Prob. 2MADCh. 1 - Comparing occupancy for two hotels Sunrise Suites...Ch. 1 - Prob. 4MADCh. 1 - Prob. 5MADCh. 1 - Prob. 1TIFCh. 1 - Communication Todd Johnson is the Vice President...Ch. 1 - For each of the following managers, describe how...Ch. 1 - The following situations describe scenarios that...Ch. 1 - Geek Chic Company provides computer repair...Ch. 1 - Which of the following items would not be...Ch. 1 - Prob. 2CMACh. 1 - A firm has 100,000 in direct materials costs,...Ch. 1 - In practice, items such as wood screws and glue...
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