Accounting

1

Mini-Case #1

This is an individual work. Please submit your answers on Canvas by 11pm, Monday, November 12th.

Edmonco, Inc. manufactures briefcases. The following information is available for the company (in millions): For Specific Date For Year 2014 Work-in-process inventory, Jan. 1, 2014 $20 Plant utilities $6 Direct materials inventory, Dec. 31, 2014 9 Indirect manufacturing labor 25

Finished goods inventory, Dec. 31, 2014 10 Depreciation—plant and equipment 8 Accounts payable, Dec. 31, 2014 28 Revenues 360 Accounts receivable, Jan. 1, 2014 57 Miscellaneous manufacturing overhead 17 Work-in-process inventory, Dec. 31, 2014 5 Marketing, distribution, and

customer-service costs

70

Finished goods inventory, Jan. 1, 2014 43 Direct materials purchased 82 Accounts receivable, Dec. 31, 2014 30 Direct manufacturing labor 41 Accounts payable, Jan. 1, 2014 40 Plant supplies used 5 Direct materials inventory, Jan. 1, 2014 39 Property taxes on plant 3 Required: 1. Prepare an income statement (5 points). 2. Calculate total prime costs (5 points). 3. Calculate total conversion costs (5 points). 4. Calculate total inventoriable costs (5 points).