Empire Company is a manufacturer of smart phones. Its controller
resigned in October 2017. An inexperienced assistant accountant has
prepared the following income statement for the month of October
2017.
EMPIRE COMPANY |
||||||
Sales revenue | $ 794,900 | |||||
Less: | Operating expenses | |||||
Raw materials purchases | $ 264,100 | |||||
Direct labor cost | 189,300 | |||||
Advertising expense | 91,400 | |||||
Selling and administrative salaries | 76,100 | |||||
Rent on factory facilities | 61,600 | |||||
Depreciation on sales equipment | 45,000 | |||||
Depreciation on factory equipment | 32,500 | |||||
Indirect labor cost | 28,500 | |||||
Utilities expense | 12,500 | |||||
Insurance expense | 8,500 | 809,500 | ||||
Net loss | $( 14,600 ) |
Prior to October 2017, the company had been profitable every month.
The company’s president is concerned about the accuracy of the
income statement. As her friend, you have been asked to review the
income statement and make necessary corrections. After examining
other manufacturing cost data, you have acquired additional
information as follows.
1. Inventory balances at the beginning and end of October
were:
October 1 |
October 31 |
|||
Raw materials | $ 21,000 | $ 35,200 | ||
Work in process | 20,400 | 14,200 | ||
Finished goods | 29,700 | 53,600 |
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $ 794,900 Less: Operating expenses Raw materials purchases $ 264,100 Direct labor cost 189,300 Advertising expense 91,400 Selling and administrative salaries 76,100 Rent on factory facilities 61,600 Depreciation on sales equipment 45,000 Depreciation on factory equipment 32,500 ...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $ 794,900 Less: Operating expenses Raw materials purchases $ 264,100 Direct labor cost 189,300 Advertising expense 91,400 Selling and administrative salaries 76,100 Rent on factory facilities 61,600 Depreciation on sales equipment 45,000 Depreciation on factory equipment 32,500 ...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $794,900 Less: Operating expenses Raw materials purchases Direct labor cost Advertising expense Selling and administrative salaries Rent on factory facilities Depreciation on sales equipment Depreciation on factory equipment Indirect labor cost Utilities expense Insurance expense 264,100 189,300...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017 EMPIRE COMPANY Income Statement. For the Month Ended October 31, 2017 Sales revenue $794,300 Less: Operating expenses Raw materials purchases $264.700 Direct labor cost 192,000 Advertising expense 92,000 Selling and administrative salaries 76,100 Rent on factory facilities 62,300 Depreciation on sales equipment 44,100 Depreciation on factory equipment 32,900 Indirect labor...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2017. An inexperienced assistant accountant has prepared the following income statement for the month of October 2017. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2017 Sales revenue $ 780,000 Less: Operating expenses Raw materials purchases $ 264,000 Direct labor cost 190,000 Advertising expense 90,000 Selling and administrative salaries 75,000 Rent on factory facilities 60,000 Depreciation on sales equipment 45,000 Depreciation on factory equipment 31,000...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 $793,400 Sales revenue Less: Operating expenses $264,400 Raw materials purchases Direct labor cost 189,800 Advertising expense 93,000 Selling and administrative salaries 78,000 Rent on factory facilities 61,800 46,000 Depreciation on sales equipment Depreciation on factory equipment 32,900 29,000 Indirect...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. $794,400 EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue Less: Operating expenses Raw materials purchases $263,500 Direct labor cost 191,800 Advertising expense 92,300 Selling and administrative salaries 76,900 Rent on factory facilities 62,500 Depreciation on sales equipment 45,100 Depreciation on factory equipment 33,000 Indirect labor...
Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. EMPIRE COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $795,000 Less: Operating expenses Raw materials purchases $264,600 Direct labor cost 190,200 Advertising expense 91,000 Selling and administrative salaries 77,800 Rent on factory facilities 61,000 Depreciation on sales equipment 45,800 Depreciation on factory equipment 32,500 Indirect labor...
Bonita Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020. BONITA COMPANY Income Statement For the Month Ended October 31, 2020 Sales revenue $794,500 Less: Operating expenses Raw materials purchases $264,000 Direct labor cost 189,200 Advertising expense 91,100 Selling and administrative salaries 76,700 Rent on factory facilities 61,500 Depreciation on sales equipment 44,900 Depreciation on factory equipment 32,600 Indirect labor...
Sheridan Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020 Problem 14-05A a-b (Video) (Part Level Submission) Sheridan Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020 SHERIDAN COMPANY Income Statement For the Month Ended October 31, 2020 Seles revenue...