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Part B: Refer to your calculations. Is this an acceptable investment? Wh
y or
why not?
3. Question : (TCO A) The following data (in thousands of dollars) have
been taken from the accounting records of the Maroon Corporation for t
he just-completed
year.
Sales 1,300
Raw materials inventory, beginning 25
Raw materials inventory, ending 30
Purchases of raw materials 250
Direct labor 350
Manufacturing overhead 500
Administrative expenses 300
Selling expenses 250
Work in process inventory, beginning 150
Work in process inventory, ending 100
Finished goods inventory, beginning 80
Finished goods inventory, ending 110
Use the above data to prepare (in thousands of dollars) a schedule of Cos
t
of Goods Manufactured and a Schedule of Cost of Goods Sold for the ye
ar.
In addition, what is the impact on the financial statements if the ending
finished goods inventory is overstated or understated?
4. Question : (TCO F) Walker Corporation is preparing its cash budget f
or November. The
budgeted beginning cash balance is $43,000. Budgeted cash receipts tota
l $117,000 and budgeted cash disbursements total $122,000. The desired
ending cash balance is $55,000. The company can borrow up to $100,00
0 at
any time from a local bank, with interest not due until the following mon
th.
Required: