The Following Is a Partial List of Account Balances for Van

question 59

Essay

The following is a partial list of account balances for Van Buskirk Inc. as of December 31, 20X1: $$\begin{array} { | l | r | } \hline \text { Trade Payables } & \$ 5,000 \\\hline \text { Trade Receivables } & 6,000 \\\hline \text { Bonds payable (100\% due in 10 years) } & 40,000 \\\hline \text { Mortgage payable (10\% due within one year) } & 10,000 \\\hline \text { Notes payable (due in 6 months) } & 2,000 \\\hline \text { Salaries payable } & 800 \\\hline \text { Sales revenue } & 49,000 \\\hline \text { Current income taxes payable } & 8,000 \\\hline \text { Deferred revenue } & 800 \\\hline\end{array}$$ Required: Prepare the liability section of Van Buskirk's classified statement of financial position for December 31, 20X1.

Apply the first-in, first-out (FIFO) method in process costing.

Differentiate between direct materials and conversion costs in process costing.

Calculate the total number of units to be assigned costs on the cost of production report.

Understand the role of beginning and ending inventory in process costing.

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