MID YEAR CHEAT SHEET

Keep track of all the shares and the foot notes, split inventory accordingly

Sales and Collections
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Adjust for cash and credit sales from total sales
Record total units sold (will be used in E/B calculation for final goods)

Manufacturing Process
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Record the proxy used to calculate pFOH. (Ex: Direct labour, Direct labour hour, Machine hour)

Fixed Assets
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Adjust for proper allocation of Land/Building purchased
Record how much % of the building is used for production (WIP %)
Some assets might be purchased by common stock (PAY ATTENTION TO DATE OF PURCHASE)
Depreciate all fixed assets: o All non-production equipment goes to depreciation expense o All production equipment goes to WIP o All patent goes to WIP o A portion of building goes into depreciation o If nothing is mentioned about the depreciation, assume it is the same amount from last

Lease o o

Operating: treat it as a normal expense
Finance:
o Purchase: PV all future payments (n-1, i) o First day: pay the first payment o FYE: Depreciate & Accrue interest = BV*i (interest expense + interest payable) o Next Year’s payment: payment is the same. Write down BV amount equal to payment (sum of interest expense + interest payable)

Operating Costs o o o o o o o o

Adjust for this year’s expense and bills unpaid o Wage’s payable
Adjust for utilities and any expenses not mentioned (assume same % allocation from last year)
Insurance adjustments (some to prepaid some to WIP – USE WIP %)
Rental adjustments (use WIP%)
Wages payable has a debit entry to DL
Production Supervisor is in FOH
Main person usually has a portion going into DL and FOH (MAKE SURE TO DIFFERENTIATE)
Check to see if I missed any expenses that should have went in WIP

Inventory o o o o o o o Determine if it’s FOB shipping points or destination o Shipping points usually have an item in transit, so don’t include in E/B on hand, just E/B
Determine all the raw materials used. (Check to see if they are properly allocated)
Adjust for