REPORTING FOR MANUFACTURERS
A manufacturing company’s balance sheet and income statement differ from those for a merchandising or service company.
Required
1. Fill in the [BLANK] descriptors on the partial balance sheets for both the manufacturing company and the merchandising company. Explain why a different presentation is required.
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Manufacturing Company |
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ADIDAS GROUP Partial Balance Sheet December 31, 2011 |
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Current assets |
|
|
Cash |
$10,000 |
|
[BLANK] |
8,000 |
|
[BLANK] |
5,000 |
|
[BLANK] |
7,000 |
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Supplies |
500 |
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Prepaid insurance |
500 |
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Total current assets |
$31,000 |
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Merchandising Company |
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PAYLESS SHOE OUTLET Partial Balance Sheet December 31, 2011 |
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Current assets |
|
|
Cash |
$ 5,000 |
|
BLANK] |
12,000 |
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Supplies |
500 |
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Prepaid insurance |
500 |
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Total current assets |
$18,000 |
2. Fill in the [BLANK] descriptors on the income statements for the manufacturing company and the merchandising company. Explain why a different presentation is required.
|
Manufacturing Company |
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ADIDAS GROUP Partial Income Statement For Year Ended December 31, 2011 |
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|
Sales |
$200,000 |
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Cost of goods sold |
|
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Finished goods inventory, Dec. 31, 2010 |
10,000 |
|
[BLANK] |
120,000 |
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Goods available for sale |
130,000 |
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Finished goods inventory, Dec. 31, 2011 |
(7,000) |
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Cost of goods sold |
123,000 |
|
Gross profit |
$ 77,000 |
|
Merchandising Company |
|
|
PAYLESS SHOE OUTLET Partial Income Statement For Year Ended December 31, 2011 |
|
|
Sales |
$190,000 |
|
Cost of goods sold |
|
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Merchandise inventory, Dec. 31, 2010 |
8,000 |
|
[BLANK] |
108,000 |
|
Goods available for sale |
116,000 |
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Merchandise inventory, Dec. 31, 2011 |
(12,000) |
|
Cost of goods sold |
104,000 |
|
Gross profit |
$ 86,000 |
3. A manufacturer’s cost of goods manufactured is the sum of (a) _______, (b) _______, and (c) _______ costs incurred in producing the product.