Problem 1-20A (Algo) Product versus selling, general, and administrative (SG&A) costs LO 1-2, 1-3 ranklin Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by issuing common stock. Franklin mmediately purchased office furniture and manufacturing equipment costing $7,700 and $24,900, respectively. The office furniture ad an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,600 salvage value and an expected seful life of three years. The company paid $11,200 for salaries of administrative personnel and $15,500 for wages to production ersonnel. Finally, the company paid $16,110 for raw materials that were used to make inventory. All inventory was started and ompleted during the year. Franklin completed production on 4,900 units of product and sold 3,970 units at a price of $15 each in year (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in year 1. (Round "Average cost per unit" to 2 decimal places.) Determine the amount of cost of goods sold that would appear on the year 1 income statement. (Do not round intermediate calculations.) b. f. Determine the amount of retained earnings that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) C. d. Determine the amount of the ending inventory balance that would appear on the December 31, year 1, balance sheet. (Do not round intermediate calculations.) Determine the amount of total assets that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) e. Determine the amount of net income that would appear on the year 1 income statement. (Round your final answer value to the nearest whole dollar.) Total product cost Average cost per unit Cost of good sold Ending inventory Net income Retained earning Total asset

Problem 1-20A (Algo) Product versus selling, general, and administrative (SG&A) costs LO 1-2, 1-3 ranklin Manufacturing Company was started on January 1, year 1, when it acquired $81,000 cash by issuing common stock. Franklin mmediately purchased office furniture and manufacturing equipment costing $7,700 and $24,900, respectively. The office furniture ad an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,600 salvage value and an expected seful life of three years. The company paid $11,200 for salaries of administrative personnel and $15,500 for wages to production ersonnel. Finally, the company paid $16,110 for raw materials that were used to make inventory. All inventory was started and ompleted during the year. Franklin completed production on 4,900 units of product and sold 3,970 units at a price of $15 each in year (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.) Required a. Determine the total product cost and the average cost per unit of the inventory produced in year 1. (Round "Average cost per unit" to 2 decimal places.) Determine the amount of cost of goods sold that would appear on the year 1 income statement. (Do not round intermediate calculations.) b. f. Determine the amount of retained earnings that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) C. d. Determine the amount of the ending inventory balance that would appear on the December 31, year 1, balance sheet. (Do not round intermediate calculations.) Determine the amount of total assets that would appear on the December 31, year 1, balance sheet. (Round your final answer value to the nearest whole dollar.) e. Determine the amount of net income that would appear on the year 1 income statement. (Round your final answer value to the nearest whole dollar.) Total product cost Average cost per unit Cost of good sold Ending inventory Net income Retained earning Total asset

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter10: Long-term Assets: Fixed And Intangible

Section: Chapter Questions

Problem 10.5CP: Communication Godwin Co. owns three delivery trucks. Details for each truck at the end of the most...

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