Use the Following Information to Calculate At,or for the Year

question 17

Essay

Use the following information to calculate at,or for the year ended,December 31,2010 (a)net income,(b)retained earnings,(c)total liabilities and stockholders' equity,and (d)accounts receivable.
$\begin{array}{lrlr}\text { Supplies } & \$ 1,000 &\text { Cash }& \$ 32,000 \\\text { Wages Expense } & 14,000 &\text { Dividends }& 16,000\\\text { Accounts Payable } & 22,000 &\text { Notes Payable} & 4,000\\\text { Retained Earnings, December 31, } & 8,000 &\text { Patents }& 7,000\\2009 & \\&&\text { Retained Earnings,}&?\\&&\text { December 31,2010}\\\text { Accounts Receivable } &? \\\text { Rent Expense } & 6,000&\text { Common Stock}&20,000 \\ \text { Commissions Earned } & 30,000\end{array}$

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead involved in converting raw materials into finished products.

Weighted-Average Method

A cost accounting method that assigns an average cost to each unit of inventory by weighting the costs of similar items.

Work in Process Inventory

The cost of partially finished goods that are still in the production process at the end of an accounting period.

Units Completed

is a measure of the number of finished units produced within a given period, reflecting the productivity or output level.