Illustration of Cost Accounting Cycle:

The Noeled Products Company is a small, newly organized company that manufactures dining tables and
chairs. The company’s products are sold to jobbers or wholesale distributors, who in turn sell them to
retailers. The basic steps in the company’s manufacturing process are as follows:

1. Lumber is cut to size for tabletops, legs, seats, arms, and backs.

2. The individual pieces of cut lumber are painted in various bright colors.

3. The pieces are assembled into tables and chairs. The beginning Statement of Financial Position for the
company on January 1 of the current year is presented below: Noeled Products Company Statement of
Financial Position January 1, 2019 Assets Liabilities and Shareholders’ Equity Cash P80,000 Liabilities P0
Building 750,000 Machinery & Equipment 150,000 Share Capital 980,000 Total Assets P980,000 Total
Liabilities and Shareholders’ EquityP980,000