Question
2) Adams Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell
2) Adams Modems, Inc. acquired a subsidiary named Anywhere, Inc. (AI). AI manufactures a wireless modem that enables users to access the Internet through cell phones. The following trial balance was drawn from the accounts of the subsidiary:
Cash | $ | 204,800 | ||||||
Raw materials inventory | 4,100 | |||||||
Work in process inventory | 6,150 | |||||||
Finished goods inventory | 7,180 | |||||||
Common stock | $ | 132,110 | ||||||
Retained earnings | 90,120 | |||||||
Totals | $ | 222,230 | $ | 222,230 | ||||
The subsidiary completed the following transactions during 2017:
Paid $61,450 cash for direct raw materials.
Transferred $51,210 of direct raw materials to work in process.
Paid production employees $81,940 cash.
Applied $54,290 of manufacturing overhead costs to work in process.
Completed work on products that cost $166,970.
Sold products that cost $146,480 for $186,430 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b.
Paid $20,490 cash for selling and administrative expenses.
Actual overhead costs paid in cash amounted to $56,350.
Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (immaterial).
Made a $5,120 cash distribution to the owners.
A) Prepare a schedule of cost of goods manufactured and sold. Fill out chart below:
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