Adams Manufacturing started in 2018 with the following account balances Cash $ 5,300 Common stock 4,494 Retained earnings 5,000 Raw materials inventory 1,400 Work in process inventory 850 Finished goods inventory (360 units $5 40 each) 1,944 Transactions during 2018 Purchased $2,980 of raw materials with cash Transferred $3,780 of raw materials to the production department Incurred and paid cash for 180 hours of direct labor $15 40 per hour Applied overhead costs to the Work in Process Inventory account The predetermined overhead rate is $16 50 per direct labor hour Incurred actual overhead costs of $3,100 cash Completed work on 1,300 units for $5 50 per unit Paid $1,160 in selling and administrative expenses in cash Sold 1,300 units for $9,800 cash revenue (assume FIFO cost flow) Adams charges overapplied or underapplied overhead directly to Cost of Goods Sold Required Record the preceding events in a horizontal statements model The beginning balances are shown as an example Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018 Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Record the preceding events in a horizontal statements model The beginning balances are shown as an example (Enter decreases to account balances with a minus sign ) Assets Equity Event No Cash Manufacturing Overhead Raw Materials Work in Process Finished Goods Common Stock Retained Earnings Revenue Expense Net Income B B $5,300 $1,400 $850 $1,944 $4,494 $5,000 1 2 3 4 5 6 7 8a 8b 9 Total $5,300 $0 $1,400 $850 $1,944 $4,494 $5,000 $0 $0 $0

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Adams Manufacturing started in 2018 with the following account balances: Cash $ 5,300 Common stock 4,494 Retained earnings 5,000 Raw materials inventory 1,400 Work in

Adams Manufacturing started in 2018 with the following account balances:


Cash	$	5,300
Common stock		4,494
Retained earnings		5,000
Raw materials inventory		1,400
Work in process inventory		850
Finished goods inventory (360 units @ $5.40 each)		1,944

Transactions during 2018

Purchased $2,980 of raw materials with cash.
Transferred $3,780 of raw materials to the production department.
Incurred and paid cash for 180 hours of direct labor @ $15.40 per hour.
Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.50 per direct labor hour.
Incurred actual overhead costs of $3,100 cash.
Completed work on 1,300 units for $5.50 per unit.
Paid $1,160 in selling and administrative expenses in cash.
Sold 1,300 units for $9,800 cash revenue (assume FIFO cost flow).
Adams charges overapplied or underapplied overhead directly to Cost of Goods Sold.

Required

Record the preceding events in a horizontal statements model. The beginning balances are shown as an example.
Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018.

Req A
Req B CGM Sched
Req B Inc Stmt
Req B Bal Sheet

Record the preceding events in a horizontal statements model. The beginning balances are shown as an example. (Enter decreases to account balances with a minus sign.)

Assets

Equity

Event No.

Cash

Manufacturing Overhead

Raw Materials

Work in Process

Finished Goods

Common Stock

Retained Earnings

Revenue

Expense