Zachary Modems, Incorporated, makes modem cards that are used in notebook computers. The company completed the following

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Zachary Modems Incorporated Makes Modem Cards That Are Used In Notebook Computers The Company Completed The Following 1 (98.09 KiB) Viewed 64 times

Zachary Modems, Incorporated, makes modem cards that are used in notebook computers. The company completed the following transactions during year 1. All purchases and sales were made with cash. 1. Acquired $940,000 of cash from the owners. 2. Purchased $365,000 of manufacturing equipment. The equipment has a $49,000 salvage value and a four-year useful life. 3. The company started and completed 6,900 modems. Direct materials purchased and used amounted to $59 per unit. 4. Direct labor costs amounted to $44 per unit. 5. The cost of manufacturing supplies amounted to $23 per unit. 6. The company paid $69,000 to rent the manufacturing facility. 7. Zachary sold all 6,900 units at a cash price of $215 per unit. (Hint: It will be necessary to determine the manufacturing costs in order to record the cost of goods sold.) 8. The sales staff was paid a $15.50 per unit sales commission. 9. Paid $58,000 to purchase equipment for administrative offices. The equipment was expected to have a $4,900 salvage value and a three-year useful life. 10. Administrative expenses consisting of office rental and salaries amounted to $81,450.
ZACHARY MODEMS, INCORPORATED Income Statement For the Period Ended December 31, year 1 $ 0 0