Solomon Manufacturing Company was started on January 1, 2018,when it acquired $81,000 cash by...

90.2K

Verified Solution

Question

Accounting

Solomon Manufacturing Company was started on January 1, 2018,when it acquired $81,000 cash by issuing common stock. Solomonimmediately purchased office furniture and manufacturing equipmentcosting $7,700 and $25,800, respectively. The office furniture hadan 8-year useful life and a zero salvage value. The manufacturingequipment had a $3,900 salvage value and an expected useful life ofthree years. The company paid $11,200 for salaries ofadministrative personnel and $15,600 for wages to productionpersonnel. Finally, the company paid $10,640 for raw materials thatwere used to make inventory. All inventory was started andcompleted during the year. Solomon completed production on 4,300units of product and sold 3,340 units at a price of $15 each in2018. (Assume that all transactions are cash transactions and thatproduct costs are computed in accordance with GAAP.)
Required
Determine the total product cost and the average cost per unitof the inventory produced in 2018. (Round "Average cost perunit" to 2 decimal places.)
Determine the amount of cost of goods sold that would appear onthe 2018 income statement. (Do not round intermediatecalculations.)
Determine the amount of the ending inventory balance that wouldappear on the December 31, 2018, balance sheet. (Do notround intermediate calculations.)
Determine the amount of net income that would appear on the 2018income statement.
Determine the amount of retained earnings that would appear onthe December 31, 2018, balance sheet.
Determine the amount of total assets that would appear on theDecember 31, 2018, balance sheet.

Answer & Explanation Solved by verified expert

4.3 Ratings (820 Votes)

Answer a Calculation of Total product cost USD Raw materials Used 10640 Wages to production personnel 15600 Depreciation on Manufacturing Equipment 7300 Total Product Cost 33540 Notes to considered below for Answer A 1 Since salvage value of purchasing furniture is zero Depreciation on See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingSolomon Manufacturing Company was started on January 1, 2018,when it acquired $81,000 cash by issuing...Solomon Manufacturing Company was started on January 1, 2018,when it acquired $81,000 cash by issuing common stock. Solomonimmediately purchased office furniture and manufacturing equipmentcosting $7,700 and $25,800, respectively. The office furniture hadan 8-year useful life and a zero salvage value. The manufacturingequipment had a $3,900 salvage value and an expected useful life ofthree years. The company paid $11,200 for salaries ofadministrative personnel and $15,600 for wages to productionpersonnel. Finally, the company paid $10,640 for raw materials thatwere used to make inventory. All inventory was started andcompleted during the year. Solomon completed production on 4,300units of product and sold 3,340 units at a price of $15 each in2018. (Assume that all transactions are cash transactions and thatproduct costs are computed in accordance with GAAP.)RequiredDetermine the total product cost and the average cost per unitof the inventory produced in 2018. (Round "Average cost perunit" to 2 decimal places.)Determine the amount of cost of goods sold that would appear onthe 2018 income statement. (Do not round intermediatecalculations.)Determine the amount of the ending inventory balance that wouldappear on the December 31, 2018, balance sheet. (Do notround intermediate calculations.)Determine the amount of net income that would appear on the 2018income statement.Determine the amount of retained earnings that would appear onthe December 31, 2018, balance sheet.Determine the amount of total assets that would appear on theDecember 31, 2018, balance sheet.