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Manufacturing Statement and Income Statement

Attached find 4 questions I did not do well on, need to get correct work and show how results were achieved.

EXERCISE 18-13
Given the following selected account balances of Randa Company, prepare its manufacturing statement in proper form for the year ended on December 31, 2005. Include a listing of the individual overhead account balances in this statement

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000
Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . 39,000
Goods in process inventory, Dec. 31, 2004 . . . . . . . 55,900
Finished goods inventory, Dec. 31, 2004 . . . . . . . . . . 64,750
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 177,600
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000
Factory computer supplies used . . . . . . . . . . . . . . . 19,840
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000
Repairs?Factory equipment . . . . . . . . . . . . . . . . . 7,250
Rent cost of factory building . . . . . . . . . . . . . . . . . . 59,000
Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . 96,000
General and administrative expenses . . . . . . . . . . . . 131,300
Raw materials inventory, Dec. 31, 2005 . . . . . . . . . . 44,700
Goods in process inventory, Dec. 31, 2005 . . . . . . . 43,500
Finished goods inventory, Dec. 31, 2005 . . . . . . . . . . 69,300

Check Cost of goods manufactured,
$546,390

PROBLEM 18-2A
A trip through a drive-up window of any leading fast-food restaurant is useful in understanding concepts such as total quality management (TQM), just-in-time (JIT), and continuous improvement (CI). Each restaurant can be viewed as a small manufacturing center. List two fast-food restaurants you are familiar with in the first column of the following table (e.g., McDonald's, Taco Bell, Burger King, and KFC). Record in the table how each company is putting each of these lean business concepts into
action, both favorably and unfavorably.

Restaurant TQM JIT CI
1.
2.
Required
Discuss the potential contributions and responsibilities of the managerial accounting professional in
helping an automobile manufacturer succeed. (Hint: Think about information and estimates that a
managerial accountant might provide new entrants into the sports utility market.)

EXERCISE 18-5
Following are three separate events affecting the managerial accounting systems for different companies.
Match the management concept(s) that the company is likely to adopt for the event identified.
There is some overlap in the meaning of customer orientation and total quality management and, therefore, some responses can include more than one concept.
Event Management Concept
_______ 1. The company starts measuring inventory a. Total quality management (TQM)
turnover and discontinues elaborate
inventory records. Its new focus is b. Just-in-time (JIT) system
to pull inventory through the system.
_______ 2. The company starts reporting measures c. Continuous improvement (CI)
on customer complaints and product
returns from customers. d. Customer orientation (CO)
_______ 3. The company starts reporting measures
such as the percent of defective products
and the number of units scrapped.

PROBLEM 18-8A
The following calendar year-end information is taken from the December 31, 2005, adjusted trial balance and other records of Plaza Company.
Advertising expense . . . . . . . . . . . . . . . . . $ 30,750 Direct labor . . . . . . . 677,480
Depreciation expense?Office equipment .. 9,250 Income taxes expense 235,725
Depreciation expense?Selling equipment . . 10,600 Indirect labor . . . . .58,875
Depreciation expense?Factory equipment . 35,550 Miscellaneous production costs . . . 10,425
Factory supervision . . . . . . . . . . . . . . 104,6000 Office salaries expense . .. . . . . . . . . 65,000
Factory supplies used . . . . . . . . . . . . . . . . . . 9,350 Raw materials purchases . . . . . 927,000
Factory utilities . . . . . . . . . . . . . . . . . . 35,000 Rent expense?Office space . . . . 24,000
Inventories Rent expense?Selling space . . . 28,100
Raw materials, December 31, 2004 . . . . . 168,850 Rent expense?Factory building . . 78,800
Raw materials, December 31, 2005 . . . . 184,000 Maintenance expense?Factory equipment . 37,400
Goods in process, December 31, 2004 . . . .17,700 Sales .. . . . . . . . . . . . . . . . . . 4,527,000
Goods in process, December 31, 2005 . . . . . ,380 Sales discounts . . . . . . . . . . . . . . 64,500
Finished goods, D ecember 31, 2004 . .169,350 Sales salaries expense .394,560
Finished goods, December 31, 2005 . 138,490

Required
1. Prepare the company's 2005 manufacturing statement.
2. Prepare the company's 2005 income statement that reports separate categories for (a) selling expenses and (b) general and administrative expenses.
Analysis Component
3. Compute the (a) inventory turnover and (b) days' sales in inventory for both its raw materials inventory and its finished goods inventory (see Chapter 6). Discuss some possible reasons for differences between these ratios for the two types of inventories.

Check (1) Cost of goods
manufactured, $1,955,650

Attachments

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EXERCISE 18-13
Given the following selected account balances of Randa Company, prepare its manufacturing statement
in proper form for the year ended on December 31, 2005. Include a listing of the individual
overhead account balances in this statement

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000
Raw materials inventory, Dec. 31, 2004 . . . . . . . . . . 39,000
Goods in process inventory, Dec. 31, 2004 . . . . . . . 55,900
Finished goods inventory, Dec. 31, 2004 . . . . . . . . . . 64,750
Raw materials purchases . . . . . . . . . . . . . . . . . . . . . 177,600
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,000
Factory computer supplies used . . . . . . . . . . . . . . . 19,840
Indirect labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,000
Repairs?Factory equipment . . . . . . . . . . . . . . . . . 7,250
Rent cost of factory building . . . . . . . . . . . . . . . . . . 59,000
Advertising expenses . . . . . . . . . . . . . . . . . . . . . . . 96,000
General and administrative expenses . . . . . . . . . . . . 131,300
Raw materials inventory, Dec. 31, 2005 . . . . . . . . . . 44,700
Goods in process inventory, Dec. 31, 2005 . . . . . . . 43,500
Finished goods inventory, Dec. 31, 2005 . . . . . . . . . . 69,300

Check Cost of goods manufactured,
$546,390

RANDA COMPANY
Manufacturing Statement
For Year Ended December 31, 2005
Direct materials
Raw materials inventory, December 31, 2004 $ 39,000
Raw materials purchases 177,600
Raw materials available for use 216,600
Less raw materials inventory, December 31, 2005 44,700
Direct materials used $171,900
Direct labor 227,000
Factory overhead
Factory computer supplies used 19,840
Indirect labor 49,000
Repairs?Factory equipment 7,250
Rent cost of factory building 59,000
Total factory overhead costs 135,090
Total manufacturing costs 533,990
Goods in process inventory, December 31, 2004 55,900
Total cost of goods in process 589,890
Less goods in process inventory, December 31, 2005 43,500
Cost of goods manufactured $546,390

PROBLEM 18-2A
A trip through a drive-up window of any leading fast-food restaurant is useful in understanding concepts such as total quality management (TQM), just-in-time (JIT), and continuous improvement (CI). Each restaurant can be viewed as a small manufacturing center. List two fast-food restaurants you are familiar with in the first column of the following table (e.g., McDonald's, Taco Bell, Burger King, and ...

Solution Summary

The solution explains how to prepare a manufacturing statement and an income statement

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