# Swanson Company was organized on March 1 of the current year. After five months of start-up...

Swanson Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August, the most recent month. Management was disappointed, however, when the income statement for August also showed a loss. Augusts' income statement follows: Swanson Company Income Statement For the Month Ended August 31 $831,000 Sales.. Less operating expenses: Indirect labor cost.............. Utilities. Direct labor cost ........ Depreciation, factory equipment Raw materials purchased. Depreciation, sales equipment Insurance.. Rent on facilities .... Selling and administrative salaries Advertising ........ Net operating loss....$ 74,000 26,000 112,000 30,000 370,000 40,000 6,000 45,000 52,000 98.000 853,000 $(22.000) The company's controller resigned a month ago. Sarah, a new inexperienced assistant in the controller's office, prepared the income statement above. Additional information about the company follows: a. 75% of the utilities cost and 50% of the insurance apply to factory operations. The remaining amounts apply to selling and administrative activities. b. Inventory balances at the beginning and end of August were: Raw materials..... Work in process.. Finished goods ... August 1$15,000 $27,000$35,000 August 31 $20,000$42,000 $60,000 c. 85% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities. Required: 1. Prepare a schedule of cost of goods manufactured for August. 2. Prepare a new, corrected, income statement for August. ## Answers #### Similar Solved Questions 1 answer ##### omega is a cube root of unity. Show the following? (a+b+c)(a+bomega+comega^2)(a+bomega^2+comega) = a^3 + b^3 + c^3 - 3abc... 1 answer ##### Two similarly charged spheres A and B separated by a distance 'r' with force of 2×10^-5N. A third identical uncharged sphere C is touched to A and then placed between a mid point of A and B. Calculate net electrostatic force on C? Two similarly charged spheres A and B separated by a distance 'r' with force of 2×10^-5N. A third identical uncharged sphere C is touched to A and then placed between a mid point of A and B. Calculate net electrostatic force on C?... 1 answer ##### 63 Sm Eu Nd La Ce Pr Pm Gd ТЬ Dy Но Er Tm Yb Lu... 63 Sm Eu Nd La Ce Pr Pm Gd ТЬ Dy Но Er Tm Yb Lu 40 14 Ceun sees 14434 1443 ass Np Fm Md Ac Th Pa Pu Am 241 Amenchns Cm Bk Es No 244064 24are Cie Ther If aluminum-27 is bombarded by an a particle, it will produce a neutron and what nuclide? A+He- n+x Enter the formula for the ... 1 answer ##### Problem 7-3A Petty cash fund reimbursement and analysis of errors LO4 Capital Irrigation has only a... Problem 7-3A Petty cash fund reimbursement and analysis of errors LO4 Capital Irrigation has only a General Journal in its accounting system and uses it to record all transactions. However, the company recently set up a petty cash fund to facilitate payments of small items. The following petty cash ... 2 answers ##### . Decide whether the graph represents a discrete random variable or a continuous random variable. The... . Decide whether the graph represents a discrete random variable or a continuous random variable. The home attendance for football games at a university 96400 97300 97700 Does the graph represent a discrete or continuous random variable? Choose the correct answer below. Home attendance is a random v... 1 answer ##### 4 Gladstone Company tracks the number of units purchased and sold throughout each accounting period but... 4 Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the time of each sale, as if it uses a perpetual Inventory system. Assume its accounting records provided the following information at the end of the annual... 1 answer ##### Lois and Benjamin own a chalet in New Mexico and rented it for 12 days for... Lois and Benjamin own a chalet in New Mexico and rented it for 12 days for$6,000. The rest of the year, the chalet was used by them and their friends and family. What is the proper tax treatment of the $6,000 income? none of the rental income needs to be reported as part of gross income. the amount... 1 answer ##### With technology taking over the healthcare workforce, do you think these changes positively or negatively impacts... With technology taking over the healthcare workforce, do you think these changes positively or negatively impacts our older working generations, or both? Explain Why/ why not?... 1 answer ##### The box size is$0.50 and the reversal size is three boxes. What is the price...
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