Fanning Manufacturing Company Was Started On January 1 Year 1 When It Acquired 79 000 Cash By Issuing Common Stock F 1 (64.81 KiB) Viewed 63 times
Fanning Manufacturing Company was started on January 1, year 1, when it acquired $79,000 cash by issuing common stock. Fanning immediately purchased office furniture and manufacturing equipment costing $8,400 and $34,700, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of four years. The company paid $11,000 for salaries of administrative personnel and $15,400 for wages to production personnel. Finally, the company paid $14,250 for raw materials that were used to make inventory. All inventory was started and completed during the year. Fanning completed production on 4,500 units of product and sold 3,550 units at a price of $16 each in year 1. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)
a. Total product cost a. Average cost per unit b. Cost of good sold c. Ending inventory d. Net income e. Retained earnings f. Total assets
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