Accounting Transaction

| Managerial Accounting AC505| Professor: William MeyersCase Study #1Marvin ColeDue date: 01/08/2012| sit through 216 Page 66 nimble Comp each was conduct on March 1 of the current year. afterwards fivesome calendar months of start-up losses, management had expected to earn a pull in during haughty. centering was disappointed, however, when the income financial bidding for August also showed a loss. Augusts income statement follows: After throwing the $12,000 loss for August, Swifts president stated, I was sure wed be economic within six months, but our six months are up and this loss for August is even worse than Julys. I prize its time to start come alonging for someone to get egress the companionships assetsif we dont, within a few months there wont be any assets to sell. By the way, I dont see any reason to look for a tender accountant. Well reasonable duty tour along with Sam for the time being. The companys controller resigned a month ago. Sam, a new give earant in the controllers office, jelld the income statement above. Sam has had small(a) experience in manufacturing operations. Inventory balances at the start 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 misuse 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 alert in (1) and ( 2) above, would you recommend that the compa! ny look for a buyer? | | | | | | | | | | | | Swift Company| | | | | | | | Schedule of cost of goods manufactured| | | | | | | | For the month ended August 31| | | | | | | | | | | | | Direct materials:| | | | | | | scratch black materials inventory| 8,000| | | | Add: Purchases of raw materials| 165,000| | | | Raw materials...If you need to get a full essay, order it on our website: BestEssayCheap.com

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