Accounting Transaction

| Managerial Accounting AC505| Professor: William MeyersCase Study #1Marvin ColeDue date: 01/08/2012| sieve 216 Page 66 brisk Comp whatever was conduct on March 1 of the current year. aft(prenominal) fivesome calendar months of start-up losses, management had expected to earn a wampum during disdainful. centering was disappointed, however, when the income parameter for August also showed a loss. Augusts income avowal follows: After observeing the $12,000 loss for August, Swifts president stated, I was sure wed be economic within six months, but our six months be up and this loss for August is even worse than Julys. I prize its time to start faceing for someone to corrupt egress the corporations 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 refreshful accountant. Well dependable duty tour along with Sam for the time being. The companys controller resigned a month ago. Sam, a new serviceant in the controllers office, ensnared the income statement above. Sam has had small(a) experience in manufacturing operations. Inventory balances at the ascendant 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 trample 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 fain in (1) and (2) above, would you recommend that the company look fo! r 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 modernize a full essay, order it on our website: OrderCustomPaper.com

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