Question

Problem 21-6A (Part Level Submission) Krause Industries' balance sheet at December 31, 2016, is presented below. KRAUSE INDUSTRIES Balance Sheet December 31, 2016 Assets Current Assets Cash Accounts receivable Finished goods inventory (1,500 units) $7,500 73,500 25,070 106,070 Total current assets Property, Plant, and Equipment Equipment Less: Accumulated depreciation $40,130 10,660 29,470 Total assets $135,540 Liabilities and Stockholders' Equity Liabilities Notes payable Accounts payable $27,270 46,490 73,760 Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $36,590 25,190 61,780 $135,540 Budgeted data for the year 2017 include the following. Sales budget (8,000 units at $32) Direct materials used Direct labor Manufacturing overhead applied Selling and administrative expenses 2017 Quarter 4 Total $76,800 $256,000 11,550 62,500 12,500 50,900 10,000 49,260 15,630 75,000

Answer 1

co Hnm A I B krause industries Budgeted cost of goos sold for the year ended DEC 31,2017 4 Finished goods inventory 1/1/17 5 cost of goods manufactured 6 Direct materials used 62500 7 Direct labor 50900 8 manufacturing overhead applied 49260 25070 9 10 cost of goods available for sale 11 Finished goods inventory 12/31/17 12 cost of goods sold 13 162660 187730 45000 142730

A BC krause industries Budgeted cost of goos sold for the year ended DEC 31,2017 4 Finished goods inventory 1/1/17 25070 5 cost of goods manufactured 6 Direct materials used 62500 7 Direct labor 50900 8 manufacturing overhead applied 49260 9 =SUM(B6:38) 10 cost of goods available for sale =C9+C4 11 Finished goods inventory 12/31/17 =2500*18 12 cost of goods sold =C10-C11 13