Required

Prepare a schedule of cost of goods manufactured and sold

Income statement

Prepare a balance sheet
     

Transcribed Image Text:

The following Balance Sheet was taken from the records of Campbell Manufacturing Company at the beginning of Year 3. Balance Sheet as of January 1, Year 2 Assets. $ Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment (net) Total Assets Stockholders' Equity Common stock Retained earnings. Total Stockholders' Equity 9,430 850 1,280 2,140 8,350 $ 22,050 8,500 10,250 $ 22,050 Transactions for the Accounting Period 1. Campbell purchased $5,800 of direct raw materials and $330 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,500 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand. 2. By the end of the year, $5,320 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 980 hours recorded in the Wages Payable account at $10.30 per hour. 4. By the end of the year, $9,194 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $6,180 and 1,030 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 980 for the year. 6. Selling and administrative expenses for the year amounted to $970 paid in cash. 7. Utilities and rent for production facilities amounted to $4,670 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,530. 9. There was $11,500 of goods completed during the year. 10. There was $12,150 of finished goods inventory sold for $18,300 cash. 11. A count of the production supplies revealed a balance of $99 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. Required The following Balance Sheet was taken from the records of Campbell Manufacturing Company at the beginning of Year 3. Balance Sheet as of January 1, Year 2 Assets. $ Cash Raw materials inventory Work in process inventory Finished goods inventory Property, plant, and equipment (net) Total Assets Stockholders' Equity Common stock Retained earnings. Total Stockholders' Equity 9,430 850 1,280 2,140 8,350 $ 22,050 8,500 10,250 $ 22,050 Transactions for the Accounting Period 1. Campbell purchased $5,800 of direct raw materials and $330 of indirect raw materials on account. The indirect materials are capitalized in the Production Supplies account. Materials requisitions showed that $5,500 of direct raw materials had been used for production during the period. The use of indirect materials is determined at the end of the year by physically counting the supplies on hand. 2. By the end of the year, $5,320 of the accounts payable had been paid in cash. 3. During the year, direct labor amounted to 980 hours recorded in the Wages Payable account at $10.30 per hour. 4. By the end of the year, $9,194 of wages payable had been paid in cash. 5. At the beginning of the year, the company expected overhead cost for the period to be $6,180 and 1,030 direct labor hours to be worked. Overhead is allocated based on direct labor hours, which, as indicated in Event 3, amounted to 980 for the year. 6. Selling and administrative expenses for the year amounted to $970 paid in cash. 7. Utilities and rent for production facilities amounted to $4,670 paid in cash. 8. Depreciation on the plant and equipment used in production amounted to $1,530. 9. There was $11,500 of goods completed during the year. 10. There was $12,150 of finished goods inventory sold for $18,300 cash. 11. A count of the production supplies revealed a balance of $99 on hand at the end of the year. 12. Any over- or underapplied overhead is considered to be insignificant. Required

Answer rating: 100% (QA)

To prepare the schedule of cost of goods manufactured and sold we need to analyze the transactions and information provided Here are the calculations ... View the full answer