Accounting Transaction

| Managerial Accounting AC505| Professor: William MeyersCase Study #1Marvin ColeDue date: 01/08/2012| disperse 216 Page 66 prompt Comp any(prenominal) was conduct on March 1 of the current year. after fivesome calendar months of start-up losses, management had expected to earn a net profit during idealistic. centering was disappointed, however, when the income tilt for August also showed a loss. Augusts income program line follows: After catch outing the $12,000 loss for August, Swifts president stated, I was sure wed be economic within six months, but our six months argon up and this loss for August is even worse than Julys. I prize its time to start regarding for someone to purchase egress the telephoners assetsif we dont, within a few months there wint be any assets to sell. By the way, I dont see any reason to look for a bare-ass accountant. Well scarce duty tour along with Sam for the time being. The companys controller resigned a month ago. S am, a new emboldenant in the controllers office, breakd the income statement above. Sam has had small(a) experience in manufacturing operations. Inventory balances at the low gear and intercept of August were: The president has asked you to check over the income statement and make a recommendation as to whether the company should look for a emptor for its assets. Required: 1.

As one measure in gathering data for a recommendation to the president, prepare a schedule of cost of goods make for August. 2.As a assist step, prepare a new income statement for August. 3.Based on your statements active in (1) and (2) above, would you recommend that the company look for a buyer?! | | | | | | | | | | | | Swift Company| | | | | | | | Schedule of cost of goods manufactured| | | | | | | | For the month ended August 31| | | | | | | | | | | | | Direct materials:| | | | | | | scratch desolate materials inventory| 8,000| | | | Add: Purchases of raw materials| 165,000| | | | Raw materials...If you need to deject a full essay, order it on our website: BestEssayCheap.com

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