What type of costs does Monterrey Company include in their finished goods? Name all the costs, as they are specified in the case. The Monterrey Company includes the cost of goods sold is the sum of raw materials in these goods plus the value added by the manufactures. The amounts include the cost of services to convert raw materials into goods in process in which they will increase the value of goods in process inventory. The costs include purchase for cash: direct manufacturing labor, $420 000, indirect manufacturing labor 174000 social security taxes and labor$ 61 200, power, heat and electricity $92,400. The other costs include supplies used in manufacturing $94, 000, raw materials $786,000, depreciation of plant and equipments 80,400, expiration of prepaid taxes and insurance $30,000.
What does the balance of $ 313.200 for accounts receivable represent? The balance of $ 313.200 for accounts receivable represents the transaction sales on credit for the year end financial statement for 2003.
What are retained earnings?
A retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings. Retained earnings are reported in the shareholders' equity section of the balance sheet. Companies with net accumulated losses may refer to negative shareholders' equity as a shareholders' deficit. A complete report of the retained earnings or retained losses is presented in the Statement of Retained Earnings or Statement of Retained Losses.
Is the balance of retained earnings account equal with the balance of cash account? The balance of retained earnings is not necessarily equal with the balance of cash account....