Question

For each of the following accounts for a manufacturing company, place a✓in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed listing of factory overhead costs. Assume that the income statement shows the calculation of cost of goods sold and the schedule of cost of goods manufactured shows only the total amount (not detailed listing) of factory overhead. An account can appear on more than one report.

Cash

Accounts receivable

Computer supplies used (office)

Beginning finished goods inventory

Beginning work in process inventory

Depreciation expense—Factory building

Depreciation expense—Office building

Direct labor

Ending work in process inventory

Ending raw materials inventory

Factory maintenance wages

Income taxes

Insurance on factory building

Property taxes on factory building

Raw materials purchases

Sales

Short answer

All financial statements or reports are mentioned in which various items are reported.

Step-by-step solution

Accounts Receivables

The Accounts receivables refer to the amount due to the company from the customers of the company. It will be recorded as the current assets on the balance sheet of the company.

Computer Supplies used (office)

The computer supplies were used in the office which means they will not be included in product cost, it is office cost, so it will come under the income statement.

Beginning finished goods inventory

The beginning finished goods inventory will come under the income statement of the company. It will come under in the income statement as it is used to compute the cost of goods sold.

Beginning work in process inventory

The beginning work in process inventory will come under the schedule of the cost of goods manufactured as it will be used in the computation of the cost of goods manufactured.

Cash

The cash is a current asset that can be used for payments for any purchases or payments of liabilities and it will be included in the balance sheet of the company.

Depreciation Expense - Factory Building

The depreciation expense on a factory building is considered as the manufacturing overhead cost so it will come under the report of overhead costs

Depreciation Expense - Office Building

The depreciation expense on an office building is considered as an administrative cost so it will come under the income statement of the company.

Direct labor

Direct labor refers to the cost incurred by the company on labor that is directly involved in the production process of the company and it is used in the computation of the cost of goods manufactured. So, it will come under the schedule of the cost of goods manufactured.

Ending work in process Inventory

Ending work in process inventory will come under the balance sheet under the inventory head of the current assets of the balance sheet of the company.

Ending raw materials inventory

Ending raw materials inventory will come under the balance sheet under the inventory head of the current assets of the balance sheet of the company.

Factory maintenance charges

Factory maintenance charges will be considered as the factory overhead cost, so they will come under the manufacturing overhead report of the company.

Income Taxes

The income taxes will come under the income statement after the profit and it is deducted from the net income of the company.

Insurance on factory building

Insurance on factory building will be considered as the factory overhead cost. So, it will come under the manufacturing overhead cost report of the company.

Property taxes on factory building

Property taxes on factory building will be considered as the factory overhead cost. So, it will come under the manufacturing overhead cost report of the company.

Raw material Purchases

Raw material purchases will come under the scheduled cost of goods manufactured as it will be used in the computation of the cost of goods manufactured.

Sales

Sales revenue is defined as revenue generated by the company on the sale of goods. So, it will come under the income statement of the company.