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s LO 11-1 the total amount of assets and the amount of e labor and materials to

ID: 2586095 • Letter: S

Question

s LO 11-1 the total amount of assets and the amount of e labor and materials to make 1,500 chairs. Further, assume that Stuart sold 1,200 of the chairs it made. State the name(s) of the shown on the income the total amount of assets and the amount of expense shown on the year 1 financial statements assuming Stuart used the to provide dental cleaning services to 500 patients. State the namets) of the expense account(s) shown on the labor and the total n on the year 1 and materials to make 1,500 chairs. Further, assume that Stuart sold 1,200 of the chairs it made. State the Plex 1of4 Next > DOLL

Explanation / Answer

Total expense for 1500 chairs = Employee compensation + Material Cost

= $213,750 + $65,550

Cost of goods available for sale = $279,300

It is given that 1500 chairs are manufactured but only 1200 was sold so 300 Chairs must be closing Stock

Cost of Goods Sold = (Total cost / 1500 chairs) * 1200 chairs

= ($279,300 / 1500) * 1200

Cost of Goods Sold = $223,440

Closing Stock = (Total cost / 1500 chairs) * 300 chairs

= ($279,300 / 1500) * 300

Closing Stock = $55,860

Total Assets = Closing Cash + Closing Stock

= ($285,000 – 279,300) + $55,860

Total Assets = $61,560

Total Expense = Cost of Goods Sold = $223,440

2. Total Expenses for the year = dental cleaning expenses

= $213,750 + $65,550

Total Expense= $279,300

These total expenses will go to MEDICAL EXPENSES ACCOUNT

Total Assets = Closing Cash

= ($285,000 – 279,300)

Total Assets = $5,700