Question

The Rogue River Manufacturing Company The following information was taken from the year-end Adjusted Trial Balance of the Rogue River Manufacturing Company: + Manufacturing Accounts: Materials Inventory - Resin A, January 1 Materials Inventory - Resin A, December 31 Materials Inventory - Hardener Q, January 1 Materials Inventory - Hardener Q, December 31 Work in Process Inventory, January 1 Work in Process Inventory, December 31 Materials Purchased Cost - Resin A Materials Purchased Cost - Hardener Direct Manufacturing Labor Cost - Dept. A Direct Manufacturing Labor Cost – Dept. B Supervisory Labor Cost Set-up Cost Utility Cost Engineering Cost Fringe Benefit Cost Purchasing Cost Data Entry Cost Depreciation Cost Property Tax Cost Insurance Cost Non-manufacturing Accounts: Notes Payable - Short-term Retained Earnings - January 1 Finished Goods Inventory, January 1 Cash Finished Goods Inventory, December 31 Interest Expense (General & Admin.) Accounts Payable Marketing, Delivery Expense Marketing, Advertising Expense Plant and Equipment Income Tax Payable Accumulated Depreciation Administrative Expense Accounts Receivable Sales Revenue Dividends Declared Common Stock $2,712 3,528 8,000 10,526 20,000 50,000 42,110 178,900 120,317 98,974 900,000 298,222 15,233 40,015 168,213 52,300 10,111 360,000 18,000 60,000 $90,092 658,848 38,555 209,000 46,800 12,200 34,422 327,000 120,000 4,081,000 From Income Statement 900,000 300,000 309.500 3,757,000 300,000 2,650,000

Additional Information:

1. For this project, round to the nearest whole dollar.
2. The income tax rate is 35%.
3. The company uses actual costing

Create a Classified Balance Sheet for December 31st

Answer 1

Balancesheet
Particulars	Amount	Amount
Assets
Inventory
Material Inventory -Resin A	3528
Material Inventory - Hardener Q	10526
WIP Inventory	50000
Finished goods Inventory	46800	110854
Cash		209000
Accounts receivables		309500
Total current assets		629354
Non- current assets
Plant & Machinery	4081000
less: Accumulated depreciation	- 900000	3181000
Total Assets		3810354
Liabilities and Equities
Liabilities
Notes payable - short term		90092
Income tax payable		236947
Accounts payable		34422
Total liabilities		361461
Equitities
Common stock		2650000
retained earnings - Jan 1	658848
Net income	440045
Less: DIvidends	- 300000
Retained earnings - Dec 31		798893
Total Equities		3448893
Total Liabilities & Equities		3810354

Working notes:

Income statement
Particulars	Amount	Amount
Sales revenue		3757000
less: Expenses
Material inventory - Resin A - Jan 1	2712
Add: Purchases	42110
Less: Mareial Inventory - Resin A -DEc 31	-3528
Material used Resin A		-41294
Material inventory - Hardener Q - Jan 1	8000
Add: Purchases	178900
Less: Mareial Inventory - Hardener Q -DEc 31	-10526
Material used Hardener Q		-176374
Direct labor cost - Dept A		-120317
Direct labor cost - Dept B		-98974
Supervisory labor cost		-900000
Set up costs		-298222
Utility cost		-15233
Engineering costs		-40015
Fringe benefit cost		-168213
Purchasing cost		-52300
Data entry cost		-10111
Depreciation cost		-360000
Property cost		-18000
Insurance cost		-60000
Interest expense		-12200
Marketing delivery expense		-327000
Marketing Advertising expense		-120000
Administrative cexpense		-300000
WIP Inventory -Jan 1	20000
Less: WIP Inventory - Dec 31	-50000	30000
FG Inventory -Jan 1	38555
Less: FG Inventory - Dec 31	-46800	8245
Earnings before tax		676992
Less: Income Tax @ 35%		-236947
Net Income		440045