accounting project

E2_29A_start.xlsx

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INSTRUCTIONS

Building Blocks of Managerial Accounting
Prepare Income Statement
Review the following amounts for West Nautical Company. Assume that the Raw Materials Inventory contains only direct materials. The Calculation of Direct Materials Used, Schedule of Cost of Goods Manufactured, and Calculation of Cost of Goods Sold can be found under the "COSTOFGOODSSOLD" tab.
			Beginning of Year	End of Year		End of Year
		Raw materials inventory	$ 23,000	$ 25,000	Insurance on plant	$ 11,500
		Work in process inventory	$ 35,000	$ 31,000	Depreciation—plant building and equipment	$ 13,400
		Finished goods inventory	$ 20,000	$ 22,000	Repairs and maintenance—plant	$ 3,700
		Purchases of direct materials		$ 74,000	Marketing expenses	$ 77,000
		Direct labor		$ 86,000	General and administrative expenses	$ 28,500
		Indirect labor		$ 42,000
		Assume that the company has the following sales during the year:
			Units sold	Price per unit
			34,000	$ 12
Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.
Requirement
Prepare the income statement for West Nautical Company in for the most recent year.
	a.	Check your spelling carefully and do not abbreviate.
	b.	Follow the format in the exhibit that shows the Manufacturer's Income Statement.
	c.	Enter all amounts as positive values. Do not use a minus sign or parentheses for any values to be subtracted.
Saving & Submitting Solution
1	Save file to desktop.
	a.	Create folder on desktop, and label COMPLETED EXCEL PROJECTS
2	Upload and submit your file to be graded.
	a.	Navigate back to the activity window - screen where you downloaded the initial spreadsheet
	b.	Click Choose button under step 3; locate the file you just saved and click Open
	c.	Click Upload button under step 3
	d.	Click Submit button under step 4
Viewing Results
1	Click on Results tab in MyAccountingLab
2	Click on the Assignment you were working on
3	Click on Project link; this will bring up your Score Summary
4	Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback

COSTOFGOODSSOLD

DATA SHEET -- DO NOT ENTER ANSWERS HERE
Calculation of Direct Materials Used
Beginning Raw Materials Inventory	$ 23,000
Plus: Purchases of direct materials	74,000
Materials available for use	$ 97,000
Less: Ending Raw Materials Inventory	25,000
Direct materials used	$ 72,000
Schedule of Cost of Goods Manufactured
Beginning Work in Process Inventory	$ 35,000
Plus Manufacturing costs incurred:
Direct materials used	72,000
Direct labor	86,000
Manufacturing overhead	70,600
Total manufacturing costs to account for	$ 263,600
Less: Ending Work in Process Inventory	31,000
Cost of goods manufactured	$ 232,600
Calculation of Cost of Goods Sold
Beginning Finished Goods Inventory	$ 20,000
Plus: Cost of goods manufactured	232,600
Cost of goods available for sale	$ 252,600
Less: Ending Finished Goods Inventory	22,000
Cost of goods sold	$ 230,600

ENTERANSWER

(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.)
West Nautical Company
Income Statement
For Current Year
Sales Revenue		$ 408,000.00
Cost of Goods Sold		$ 230,600.00
Gross Profit		$ 177,400.00
Operating Expenses
Marketing Expenses	$ 77,000.00
General and Administrative expenses	$ 28,500.00
		$ 105,500.00
Operating income		$ 71,900.00