Records for Josten's Custom Networks Contained the Following Data $\quad$

question 64

Essay

Records for Josten's Custom Networks contained the following data.
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text { Dates }$
$\begin{array} { | l | c | c | c | c | } \hline \text { Jab Na. } & \text { Started } & \text { Finished } & \text { Sald } & \text { Tatal Cost af Jab an June 30 } \\\hline 100 & \text { May 12 } & \text { June 12 } & \text { June 21 } & \text { \$24,500 } \\\hline 101 & \text { May 15 } & \text { June 20 } & \text { June 25 } & 12,100 \\\hline 102 & \text { Juge 8 } & \text { July 8 } & \text { July 15 } & 31,700 \\\hline 103 & \text { June 12 } & \text { June 28 } & \text { July 2 } & 17,300 \\\hline 104 & \text { June 20 } & \text { July 19 } & \text { July 26 } & 27,800 \\\hline\end{array}$ Compute:
a)Work in process inventory on June 30
b)Finished goods inventory on June 30
c)Cost of goods sold for June

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Definitions:

Cash Basis

An accounting method where revenue is recorded when cash is received, and expenses are recorded when cash is paid out, without regard to when the transactions actually occur.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to compute net cash provided by operating activities.

Patent Amortization

The gradual expense recognition of a patent's cost over its useful life to reflect the consumption of the patent's value over time.

Net Income

Net income is the total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.