Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Phillips Company is a manufacturer of computers. Its controller resigned in October 2012. An inexperienced assistant accountant has prepared the following income statement for the month of October 2012.
PHILLIPS COMPANY Income Statement For the Month Ended October 31, 2012
Sales (net)
$780,000
Less: Operating expenses
Raw materials purchases
$264,000
Direct labor cost
190,000
Advertising expense
90,000
Selling and administrative salaries
75,000
Rent on factory facilities
60,000
Depreciation on sales equipment
45,000
Depreciation on factory equipment
31,000
Indirect labor cost
28,000
Utilities expense
12,000
Insurance expense
8,000
803,000
Net loss
($23,000)
Prior to October 2012, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.
1. Inventory balances at the beginning and end of October were:
1-Oct
31-Oct
Raw materials
$18,000
$29,000
Work in process
16,000
14,000
Finished goods
30,000
2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.
Instructions
(a) Prepare a schedule of cost of goods manufactured for October 2012.
(b) Prepare a correct income statement for October 2012.
calculation of amounts used in accounting equation.1. fongs medical supplies has assets equal to 123000 and liabilities
List the accounting standards issued by ICAI and prepare a Three-column Cash Book of M/s Thuglak & Co. from the particulars
What common internal control weaknesses contributed to this fraud?
Compare the latest Net Profit after tax for two years and make some comments that whether to invest or not. Explain why yes or not and what kind of shares are being issued?
Sara owns an automobile for personal use. The adjusted basis is $14,000 and the FMV is $12,500. Sara has owned the car for two years. Calculate the realized and recognized gain or loss if Sara sells the vehicle for $12,500
What should Quinn report on its 2004 income statement as a result of the increase in fair value of the investments in 2004?
What is the amount of unrestricted Cash and Investments and what is the amount restricted Cash and Investments
Organize the transaction in accounts under an accounting equation and prepare the stockholders equity section of the balance sheet as of December 31, 2012.
Show the calculation of the amount of the gain or loss to be recognized by rogers. Prepare all entries that are necessary on april 3rd 2013.
the spot rate was $2.80 per 100 rupees and the option premium was $0.004 per 100 rupees. What is fair value of the option on December 1, 20x1?
Darron Co. was formed on January 1, 2009 as a wholly owned foreign subsidiary of a U.S. corporation. Darron’s functional currency was the stickle €. The following transactions events occurred during 2007: What was the amount of the translation ad..
Read each definition and compare and contrast the FASB and IASB versions and then compare to the Boards' definition and what is the best definition and why?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd