Business, 10.10.2020 14:01 sierrabuckner397
Issa Manufacturing Company was started on January 1, 2014, when it acquired $80,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,100, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,000 for wages to production personnel. Finally, the company paid $18,760 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,900 units of product and sold 3,990 units at a price of $16 each in 2014. (Assume that all transactions are cash transactions.)
a. Determine the total product cost and the average cost per unit of the inventory produced in 2014. (Round "Average cost per unit" answer to 2 decimal places.
b. Determine the amount of cost of goods sold that would appear on the 2014 income statement. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
c. Determine the amount of the ending inventory balance that would appear on the December 31, 2014, balance sheet. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
d. Determine the amount of net income that would appear on the 2014 income statement. (Round your answer to the nearest dollar amount.)
e. Determine the amount of retained earnings that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)
f. Determine the amount of total assets that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)
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