Presented Below Is Data from Partially Completed Ledger Accounts and Additional

question 37

Essay

Presented below is data from partially completed ledger accounts and additional information for the CumChan Manufacturing Company for the year 2014. Account balances at 01/01/14:

Additional Information:

1. Direct manufacturing labour wage rate was $7.50 per hour.
2. Manufacturing overhead is allocated at $10 per direct manufacturing labour hour.
3. During the year, sales revenues were $595,000, and marketing and distribution expenses were $70,000.
4. Direct labour for year $180,000.
5. Total credit entries to Raw Materials account during year $190,000.
6. Total debit entries to the Finished Goods account during year $470,000.
7. Total debit entries to Manufacturing Overhead during the year $270,000.
8. Ending Finished Goods was $10,000.
9. Administrative expenses were $50,000.

-What was Net Income in 2014?

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Definitions:

Z-Test

A statistical test used to determine whether two population means are different when the variances are known and the sample size is large.

One-Sample Test

A statistical procedure used to determine if a sample comes from a population with a specific characteristic or parameter.

Proportions

Statistical measures that express the relationship of a part to the whole, often represented as a fraction or percentage.

Two-Sample Tests

Statistical tests used to compare the means or proportions of two independent or unrelated groups.