A partial list of HARTSELL MANUFACTURING accounts and their balances for the mon
ID: 2468129 • Letter: A
Question
A partial list of HARTSELL MANUFACTURING accounts and their balances for the month of November 2012 follows.
Accounts Receivable $ 275,000
Advertising Expenses 54,000
Cash 260,000
Depreciation—Factory Equipment 16,800
Depreciation—Office Equipment 2,400
Direct Labor 42,000
Factory Supplies Used 16,800
Factory Utilities 10,200
Finished Goods Inventory, November 30 68,800
Finished Goods Inventory, October 31 72,550
Indirect Labor 48,000
Office Supplies Expense 1,600
Other Administrative Expenses 72,000
Prepaid Expenses 41,250
Raw Materials Inventory, November 30 52,700
Raw Materials Inventory, October 31 38,000
Raw Materials Purchases 184,500
Rent—Factory Equipment 47,000
Repairs—Factory Equipment 4,500
Salaries 325,000
Sales 1,350,000
Sales Commissions 40,500
Work In Process Inventory October 31 52,700
Work In Process Inventory, November 30 42,000
Instructions (a) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, an income statement, and the current assets section of the balance sheet for HARTSELL MANUFACTURING Corporation for the month of November 2012.
Explanation / Answer
1
HARTSELL MANUFACTURING
Cost of goods manufactured scheduled
For the month of November 2012
Raw Materials Purchases
$ 184,500
Add: Raw Materials Inventory, November 30
$ 52,700
Less: Raw Materials Inventory, October 31
$ (38,000)
Direct Material Used
$ 199,200
Add: Direct Labor
42000
Add: Factory Overhead:
Depreciation—Factory Equipment
$ 16,800
Factory Supplies Used
$ 16,800
Factory Utilities
$ 10,200
Indirect Labor
$ 48,000
Rent—Factory Equipment
$ 47,000
Repairs—Factory Equipment
$ 4,500
Total Factory Overhead:
$ 143,300
Total Manufacturing costs
$ 384,500
Add: Work In Process Inventory October 31
$ 52,700
Less: Work In Process Inventory, November 30
$ (42,000)
Cost of goods manufactured scheduled
$ 395,200
2
HARTSELL MANUFACTURING
Income statement
For the month of November 2012
Sales
$ 1,350,000
Less: Cost of Good sold
Cost of goods manufactured
$ 395,200
Add: Finished Goods Inventory, October 31
$ 72,550
Less: Finished Goods Inventory, November 30
$ (68,800)
Cost of Goods sold
$ (398,950)
Less: Other expenses
Advertising Expenses
$ 54,000
Office Supplies Expense
$ 1,600
Other Administrative Expenses
$ 72,000
Salaries
$ 325,000
Sales Commissions
$ 40,500
Total Expenses
$ (493,100)
Net income
$ 457,950
3
HARTSELL MANUFACTURING
Current Assets section of Balance sheet
For the month of November 2012
Cash
$ 260,000
Accounts Receivable
$ 275,000
Prepaid Expenses
$ 41,250
Raw Materials Inventory, November 30
$ 52,700
Work In Process Inventory, November 30
$ 42,000
Finished Goods Inventory, November 30
$ 68,800
Total Current Assets
$ 739,750
1
HARTSELL MANUFACTURING
Cost of goods manufactured scheduled
For the month of November 2012
Raw Materials Purchases
$ 184,500
Add: Raw Materials Inventory, November 30
$ 52,700
Less: Raw Materials Inventory, October 31
$ (38,000)
Direct Material Used
$ 199,200
Add: Direct Labor
42000
Add: Factory Overhead:
Depreciation—Factory Equipment
$ 16,800
Factory Supplies Used
$ 16,800
Factory Utilities
$ 10,200
Indirect Labor
$ 48,000
Rent—Factory Equipment
$ 47,000
Repairs—Factory Equipment
$ 4,500
Total Factory Overhead:
$ 143,300
Total Manufacturing costs
$ 384,500
Add: Work In Process Inventory October 31
$ 52,700
Less: Work In Process Inventory, November 30
$ (42,000)
Cost of goods manufactured scheduled
$ 395,200
2
HARTSELL MANUFACTURING
Income statement
For the month of November 2012
Sales
$ 1,350,000
Less: Cost of Good sold
Cost of goods manufactured
$ 395,200
Add: Finished Goods Inventory, October 31
$ 72,550
Less: Finished Goods Inventory, November 30
$ (68,800)
Cost of Goods sold
$ (398,950)
Less: Other expenses
Advertising Expenses
$ 54,000
Office Supplies Expense
$ 1,600
Other Administrative Expenses
$ 72,000
Salaries
$ 325,000
Sales Commissions
$ 40,500
Total Expenses
$ (493,100)
Net income
$ 457,950
3
HARTSELL MANUFACTURING
Current Assets section of Balance sheet
For the month of November 2012
Cash
$ 260,000
Accounts Receivable
$ 275,000
Prepaid Expenses
$ 41,250
Raw Materials Inventory, November 30
$ 52,700
Work In Process Inventory, November 30
$ 42,000
Finished Goods Inventory, November 30
$ 68,800
Total Current Assets
$ 739,750
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