Question

I only need the answer to letter (f.) the amount of total assets

Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not iIndicate com Thornton Manufacturing Company was started on January 1, 2018, when it acquired $80,000 cash by Issuing common stock. Thornton immediately purchased office furniture and manufacturing equipment costing $7.000 and $25,400, respectively. The office furniture had an 8-year useful life and a zero salvage value. The manufacturing equipment had a $3,800 salvage value and an expected useful lfe of three years. The company paid $11,600 for salaries of administrative personnel and $15,200 for wages to production personnel. Finally, the company paid $16,100 for raw materials that were used to make inventory. All nventory was started and completed during the year. Thornton completed production on 5,000 units of product and sold 4,100 units at a price of $15 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP) a Determine the total product cost and the average cost per unit of the inventory produced in 2018. (Round "Average cost per unit" to 2 decimal places.) b. Determine the amount of cost of goods sold that would appear on the 2018 income statement. (Do not round Intermediate calculations.) c. Determine the amount of the ending inventory balance that would appear on the December 31, 2018, balance sheet. (Do not rounch intermediate calculations) d. Determine the amount of net income that would appear on the 2018 income statement e. Determine the amount of retained eamings that would appear on the December 31, 2018, balance sheet f Determine the amount of total assets that would appear on the December 31, 2018, balance sheet Answer is complete but not entirely correct Total product cost Average cost per Cost of good sold Ending nventory Net income Retared earningー ($ 38,500。 7.70 31,570 6.9300 17,455 17,4550 Total ass 5 63,110 C MacBook Air 5 7 8 9

Answer 1

(f) The amount of total assets that would appear on the 31st December 2018 balance sheet will $97455

Total assets of Thornton Manufacturing company that will appear in balance sheet include following items

Cash = $66200 ($80000- $7000- $25400- $11600- $15200- $16100+ $61500)

Inventory= $6930 (Average cost price per unit * Number of remaining units left on 31st December 2018 i.e. $7.70*900)

Furniture = $6125 ($7000- $875 Depreciation charged for year 2018)

Manufacturing Equipment= $18200 ($25400- $7200 depreciation charged during year 2018)

Therefore Total assets including Cash+ Inventory+Furniture+ manufacturing equipment i.e. $66200+$6930+$6125+$18200 respectively =$97455

Working Notes for calculation of total assets

Calculation of Depreciation on Furniture with no salvage value = 7000/8 i.e. $875 depreciation charge for year 2018

Value of Furniture at end of 2018= $7000- $875 = $6125

Calculation of Depreciation on manufacturing equipment = 25400-3800/3 i.e. $7200 depreciation charged during year 2018

Value of manufacturing equipment at end of 2018 = $25400- $7200 = $18200

Out of 5000 units produced, 4100 units were sold during year. Hence remaining inventory is 900 units (5000 units- 4100 units) Inventory value at the end of year 2018 is equal to $7.70*900 ( Average cost per unit* Remaining inventory) i.e. $6930

Cash at the end of year 2018 = $66200 It will include all the cash inflow transaction - cash outflow transaction

Cash Inflow Transaction Cash received from common stock= $80000

Add cash received from sale of 4100 units of inventory at $15 each =$61500 (4100*15)

Cash outflow transaction

Cash paid to buy furniture =$7000

Cash paid to buy manufacturing equipment =$25400

Cash paid as salary to administrative staff = $11600

Cash paid as wages for production= $15200

Cash paid for purchasing raw material =$ 16100

Cash value at end of 2018 will be ($80000+$61500- $7000- $25400-$11600-$15200-$16100)= $66200 ( All cash inflow during the year- All cash outflow during the year)