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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:

ANYWHERE, INC.
Schedule of Cost of Goods Manufactured and Sold
For Year Ended December, 31 2017
Raw materials available for use
Direct raw materials used
Total manufacturing costs
Total work in process inventory
Cost of goods manufactured
Cost of goods available for sale
Cost of goods sold

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