Business, 10.10.2020 14:01 sierrabuckner397

Issa Manufacturing Company was started on January 1, 2014, when it acquired $80,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,100, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,000 for wages to production personnel. Finally, the company paid $18,760 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,900 units of product and sold 3,990 units at a price of $16 each in 2014. (Assume that all transactions are cash transactions.) a. Determine the total product cost and the average cost per unit of the inventory produced in 2014. (Round "Average cost per unit" answer to 2 decimal places.

b. Determine the amount of cost of goods sold that would appear on the 2014 income statement. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

c. Determine the amount of the ending inventory balance that would appear on the December 31, 2014, balance sheet. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

d. Determine the amount of net income that would appear on the 2014 income statement. (Round your answer to the nearest dollar amount.)

e. Determine the amount of retained earnings that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)

f. Determine the amount of total assets that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)

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Answer from: karankhatri1946

a. Determine the total product cost and the average cost per unit of the inventory produced in 2014.

total cost of finished units = $41,160

cost per unit = $8.40

b. Determine the amount of cost of goods sold that would appear on the 2014 income statement.

COGS = $33,516

c. Determine the amount of the ending inventory balance that would appear on the December 31, 2014, balance sheet.

$7,644

d. Determine the amount of net income that would appear on the 2014 income statement.

$17,624

e. Determine the amount of retained earnings that would appear on the December 31, 2014, balance sheet.

$17,624

f. Determine the amount of total assets that would appear on the December 31, 2014, balance sheet.

cash ($63,480) + inventory ($7,644) + office furniture ($7,800) + manufacturing equipment ($18,700) = $97,624

Explanation:

Dr Cash 80,000

Cr Common stock 80,000

Dr Office furniture 9,100

Dr Manufacturing equipment 26,100

Cr Cash 35,200

Dr S&A salaries expense 11,400

Dr Inventory: finished units 15,000

Cr Cash 26,400

Dr Inventory: raw materials 18,760

Cr Cash 18,760

Dr Inventory: finished units 18,760

Cr Inventory: raw materials 18,760

Dr Inventory: finished units 7,400

Cr Accumulated depreciation - manufacturing equipment

Dr Cash 63,840

Cr sales revenue 63,840

total cost of manufactured goods (4,900 units) = $41,160, so $8.40 per unit

Dr Cost of goods sold 33,516

Cr Inventory: finished units 33,516

ending inventory = $41,160 - $33,516 = $7,644

Dr Depreciation expense 1,300

Cr Accumulated depreciation - office furniture 1,300

Total period costs = $12,700

operating income = $63,840 - $33,516 - $12,700 = $17,624

Answer from: Quest

answer; ///i believe the correct answer is (c) laissez-faire;

Answer from: Quest

answer/// sequence of operations that requires the longest time for completion';

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