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Do Homework - Manraj Sandhu - Google Chrome ? Secure l https://www.mat x?homeworkld =485885914&questionld; = 1 &flushed; = false&cld;= 50403 1 1 &centerwinsyes; Managerial Accounting BusAc187 Summer 2018 5674 Manraj Sandhu ? 1 6/21/18 11:47 PM Homework: Ch 2 Homework Score: 0 of 7 pts P2-44A (similar to) Save 2 of 3 (0 complete) HW Score: 0%, 0 of 20 pts ?Question Help * Part One: In 2015, Petunia Root opened Petunia's Posies, a small retail shop selling floral arrangements. EEB (ClIck the icon to view the records.) Read the requirement Part One). Begin by calculating the cost of goods sold for the year Part Two: Petunia's Posies was so successful that Petunia decided to manufacture her own brand of fioral supplies: Floral Best Manufacturing ?(click the icon to view the records ) Read the Part Three: Show the ending inventories that would appear on these balance sheets (click the Icon to view additional information.) Petunia's Posies Calculation of Cost of Goods Sold For the Year Ended December 31, 2016 Plus Less Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer

Explanation / Answer

A)

*Cost Of inventory sold can be obtaines this formula.

*If tax rate is given we should firstly calculate profit before tax and then apply tax rate to net earnings to find Net Profit after Tax

B)

1) Cost of Goods manufactured for Floral Best Manufacturing For 31,dec,2017

*cost of goods manufactured is the costs associated with manufacturing products that are moved from factory to Finished goods as inventory in an year.

So Work in Progress Cannot be incorporated to Cost of goods manufactured.(It is a current asset in F/P)

Note: *Delivery expense: cost incurred to transport raw material to factory(Carriage Inwards) only included in cost of good.

Cost of Goods Manufactured  includes all costs necessary to get an asset in place and ready for use.

2) Income Statement of Floral Best Manufacture for Year ended December,31,2017

Note: Work in progress to be a current asset in Balance sheet

3)Differents in Petunia's And Florals Income Statement

   The differences are appeared because of change in nature of their business. here Petunia is a shop which sells products bought from outside and at the same time Floral sells products they manufactured as their own.

Floral has more complex accounting system inorder to include all the costs involved in producing products. But still there is no that much differences in income statement.

small differences

Petunia shop does not need to calculate cost of goods manufactured but just to include purchase price from supplier as cost. On this only adjustments needed for purchases returns and purchases discounts.

Floral has to schedule for finished goods inventory and adjustment for manufacturing at the same same Petunia has just to compare Opening inventory,closing inventory and purchase.

COST OF GOODS SOLD-Petunia (2016) Opening Inventory jan-2016 12,600 Add:Purchase of Merchandise 34,000 Less: Closing Inventory Dec-2016 (10,000) Cost Of Goods Sold 36,600

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