Case 6-1 Browning Manufacturing

Only available on StudyMode
  • Download(s) : 386
  • Published : January 3, 2012
Open Document
Text Preview
Michellee Marie B. Chavez
2004-39460
BM 220 - Management Accounting

1)
BROWNING MANUFACTURING COMPANY

T-Accounts

Cash Accounts Receivable Notes Payable
2,604,000.00 144,000.00 2,562,000.00 49,200.00 288,840.00 118,440.00 78,000.00 311,760.00 19,200.00 264,000.00 264,000.00 492,000.00 2,604,000.00 552,840.00
198,000.00 2,873,760.00 2,672,400.00
49,200.00 201,360.00 Interest Expense
135,600.00 38,400.00
522,000.00 Finished Goods 38,400.00
38,400.00 257,040.00 1,806,624.00
788,400.00 1,901,952.00 Indirect Manufacturing Labor
9,000.00 2,158,992.00 1,806,624.00 198,000.00
36,000.00 352,368.00 198,000.00
52,200.00
2,986,440.00 2,542,800.00 Manufacturing plant and equipment Direct Manufacturing Labor 443,640.00 2,678,400.00 492,000.00
144,000.00 492,000.00
Prepaid taxes and insurances 2,822,400.00
66,720.00 52,800.00 Materials
78,000.00 Accounts Payable 110,520.00 811,000.00 144,720.00 52,800.00 788,400.00 825,000.00 825,000.00 91,920.00 66,000.00 935,520.00 811,000.00
185,760.00 124,520.00
788,400.00 1,076,760.00
Income Taxes Payable 288,360.00 Work in Process
9,000.00 9,000.00 172,200.00 1,901,952.00
5,800.00 Selling and Administrative Expense 811,000.00 9,000.00 14,800.00 522,000.00 1,129,200.00
5,800.00 522,000.00 2,112,400.00 1,901,952.00
210,448.00
Supplies Depreciation ::
17,280.00 61,200.00 140,400.00 492,000.00
66,000.00 907,200.00 198,000.00
83,280.00 61,200.00 1,047,600.00 49,200.00
22,080.00 135,600.00
52,800.00
Capital Stock Income Tax Expense 61,200.00
1,512,000.00 58,000.00 140,400.00
1,512,000.00 58,000.00 1,129,200.00

Sales Cost of Goods Sold Power, Heat and Light
2,562,000.00 1,806,624.00 135,600.00
2,562,000.00 1,806,624.00 135,600.00

Sales Returns and Allowances Sales Discounts Social Security Taxes 19,200.00 49,200.00 49,200.00
19,200.00 49,200.00 49,200.00

Retained Earnings
829,560.00
36,000.00 68,576.00
36,000.00 898,136.00
862,136.00

Statement of Retained Earnings
Retained earnings, 12/31/09 $829,560.00
Add net income 68,576.00
898,136.00
Less dividends 36,000.00
Retained earnings, 12/31/10 $862,136.00

BROWNING MANUFACTURING COMPANY
Projected 2010 Statement of Cost of Goods Sold

Finished Goods Inventory, 1/1/10 $257,040.00
Work in process inventory, 1/1/10 $172,200.00
Materials used 811,000.00
Plus: Factory expenses
Direct manufacturing labor 492,000.00
Factory Overhead:
Indirect manufacturing labor $198,000.00
Power, heat and light 135,600.00
Depreciation of plant 140,400.00
Social security taxes 49,200.00
Taxes and insurance, factory 52,800.00
Supplies 61,200.00 637,200.00
2,112,400.00
Less: Work in process inventory, 12/31/10 210,448.00 Cost of goods manufactured 1,901,952.00
2,158,992.00
Less: Finished goods inventory, 12/31/10 352,368.00 Cost of goods sold $1,806,624.00

2)
BROWNING MANUFACTURING COMPANY
Projected 2010 Income Statement

Sales 2,562,000.00
Less: Sales returns and allowances 19,200.00...
tracking img