Issa Manufacturing Company was started on January 1, 2014, when it acquired $80,000 cash by issuing common stock. Issa immediately purchased office furniture and manufacturing equipment costing $9,100 and $26,100, respectively. The office furniture had a seven-year useful life and a zero salvage value. The manufacturing equipment had a $3,900 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,000 for wages to production personnel. Finally, the company paid $18,760 for raw materials that were used to make inventory. All inventory was started and completed during the year. Issa completed production on 4,900 units of product and sold 3,990 units at a price of $16 each in 2014. (Assume that all transactions are cash transactions.) a. Determine the total product cost and the average cost per unit of the inventory produced in 2014. (Round "Average cost per unit" answer to 2 decimal places.

b. Determine the amount of cost of goods sold that would appear on the 2014 income statement. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

c. Determine the amount of the ending inventory balance that would appear on the December 31, 2014, balance sheet. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)

d. Determine the amount of net income that would appear on the 2014 income statement. (Round your answer to the nearest dollar amount.)

e. Determine the amount of retained earnings that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)

f. Determine the amount of total assets that would appear on the December 31, 2014, balance sheet. (Round your answer to the nearest dollar amount.)

a. Determine the total product cost and the average cost per unit of the inventory produced in 2014.

total cost of finished units = $41,160

cost per unit = $8.40

b. Determine the amount of cost of goods sold that would appear on the 2014 income statement.

COGS = $33,516

c. Determine the amount of the ending inventory balance that would appear on the December 31, 2014, balance sheet.

$7,644

d. Determine the amount of net income that would appear on the 2014 income statement.

$17,624

e. Determine the amount of retained earnings that would appear on the December 31, 2014, balance sheet.

$17,624

f. Determine the amount of total assets that would appear on the December 31, 2014, balance sheet.

cash ($63,480) + inventory ($7,644) + office furniture ($7,800) + manufacturing equipment ($18,700) = $97,624

Explanation:

Dr Cash 80,000

   Cr Common stock 80,000

Dr Office furniture 9,100

Dr Manufacturing equipment 26,100

    Cr Cash 35,200

Dr S&A salaries expense 11,400

Dr Inventory: finished units 15,000

    Cr Cash 26,400

Dr Inventory: raw materials 18,760

    Cr Cash 18,760

Dr Inventory: finished units 18,760

    Cr Inventory: raw materials 18,760

Dr Inventory: finished units 7,400

    Cr Accumulated depreciation - manufacturing equipment

Dr Cash 63,840

    Cr sales revenue 63,840

total cost of manufactured goods (4,900 units) = $41,160, so $8.40 per unit

Dr Cost of goods sold 33,516

    Cr Inventory: finished units 33,516

ending inventory = $41,160 - $33,516 = $7,644

Dr Depreciation expense 1,300

    Cr Accumulated depreciation - office furniture 1,300

Total period costs = $12,700

operating income = $63,840 - $33,516 - $12,700 = $17,624

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answerthat 50% of all cases go to trial;