HARTSELL MANUFACTURING Problem HARTSELL MANUFACTURING Corporation is a private c
ID: 2468940 • Letter: H
Question
HARTSELL MANUFACTURING Problem HARTSELL MANUFACTURING Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms, parks, commercial projects, and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission of HARTSELL MANUFACTURING is to manufacture quality parts that can be used for effective irrigation projects that also conserve water. By that effort, the company hopes to satisfy its customers, provide rapid and responsible service, and serve the community and the employees who represent them in each community. The company has been growing rapidly, so management is considering new ideas to help the company continue its growth and maintain the high quality of its products. HARTSELL MANUFACTURING was founded by Gearge Keller who is the company president and chief executive officer (CEO). Working with him from the company’s inception was Will’s brother, Ben, whose sprinkler designs and ideas about the installation of proper systems have been a major basis of the company’s success. Ben is the vice president who oversees all aspects of design and production in the company. The factory itself is managed by Elizabeth Carter who hires his line managers to supervise the factory employees. The factory makes all of the parts for the irrigation systems. The purchasing department is managed by Hector Hines. The installation and training division is overseen by vice president Henry Writer, who supervises the managers of the six local installation operations. Each of these local managers hires his or her own local service people. These service employees are trained by the home office under Henry Writer’s direction because of the uniqueness of the company’s products. There is a small Human Resources department under the direction of Ali Rahman, a vice president who handles the employee paperwork, though hiring is actually performed by the separate departments. Sam Totter is the vice president who heads the sales and marketing area; he oversees 10 well-trained salespeople. The accounting and finance division of the company is headed by Lara Kelvin, who is the chief financial officer (CFO) and a company vice president; he is a member of the Institute of Management Accountants and holds a certificate in management accounting. He has a small staff of Certified Public Accountants, including a controller and a treasurer, and a staff of accounting input operators who maintain the financial records. A partial list of HARTSELL MANUFACTURING accounts and their balances for the month of November 2012 follows. Accounts Receivable $ 275,000 Advertising Expenses 54,000 Cash 260,000 Depreciation—Factory Equipment 16,800 Depreciation—Office Equipment 2,400 Direct Labor 42,000 Factory Supplies Used 16,800 Factory Utilities 10,200 Finished Goods Inventory, November 30 68,800 Finished Goods Inventory, October 31 72,550 Indirect Labor 48,000 Office Supplies Expense 1,600 Other Administrative Expenses 72,000 Prepaid Expenses 41,250 Raw Materials Inventory, November 30 52,700 Raw Materials Inventory, October 31 38,000 Raw Materials Purchases 184,500 Rent—Factory Equipment 47,000 Repairs—Factory Equipment 4,500 Salaries 325,000 Sales 1,350,000 Sales Commissions 40,500 Work In Process Inventory October 31 52,700 Work In Process Inventory, November 30 42,000 Instructions (a) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, an income statement, and the current assets section of the balance sheet for HARTSELL MANUFACTURING Corporation for the month of November 2012. (Please Post FORMULAS on how to solve each one also)
Explanation / Answer
cost of goods manufactured schedule
an income statement
current assets section of the balance sheet for HARTSELL MANUFACTURING Corporation
PARTICULARS AMOUNT ($) AMOUNT ($) TOTAL AMOUNT ($) WIP 31 oct 52700 Direct Materilas: Raw materials inventory, 31 oct 38000 Raw Materials Purchases 184500 Total raw materials available for use 222500 Less: Raw materials inventory, 30 nov 52700 Direct materials used 169800 Direct labor 42000 Manufacturing overhead: Depreciation—Factory Equipment 16800 Factory Supplies Used 16800 Factory Utilities 10200 Indirect Labor 48000 Rent—Factory Equipment 47000 Repairs—Factory Equipment 4500 Salaries (Manufacturing related considered) 325000 Total manufacturing overhead 468300 Total manufacturing costs 680100 Total cost of work in process 732800 Less: Work in process, 30 nov 42000 Cost of goods manufactured 690800Related Questions
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