From the Account Balances Listed Below Prepare a Schedule of Cost

question 13

Essay

From the account balances listed below prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31 2016. $\begin{array} { l r } & \text { Account Balances } \\ \text { Finished Goods Inventory, December } 31 & \$ 42,000 \\\text { Factory Supervisory Salaries } & 12,000 \\\text { Income Tax Expense } & 18,000 \\\text { Raw Materials Inventory, December 1 } & 12,000 \\\text { Work In Process Inventory, December } 31 & 15,000 \\\text { Sales Salaries Expense } & 14,000 \\\text { Factory Depreciation Expense } & 8,000 \\\text { Finished Goods Inventory, December 1 } & 35,000 \\\text { Raw Materials Purchases } & 105,000 \\\text { Work In Process Inventory, December 1 } & 25,000 \\\text { Factory Utilities Expense } & 6,000 \\\text { Direct Labor } & 70,000 \\\text { Raw Materials Inventory, December 31 } & 19,000 \\\text { Sales Returns and Allowances } & 5,000 \\\text { Indirect Labor } & 21,000\end{array}$

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Definitions:

Average Accounting Return

The average accounting return is a financial ratio that represents the average annual accounting profit compared to the initial investment.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments by finding the interest rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Projects

Specific tasks or programs undertaken to achieve a goal, often characterized by defined scope, resources, and timeframe.

Average Accounting Return

A measure used to evaluate the profitability of investments, calculated as the average net income of a project divided by its average book value.