apter 12 HW Adams Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chat parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Adams's operations for its first year, 2018. (Assume that all transactions are for cash unless otherwise stated.) Book Print rences 1. The company was started when it acquired a $135,000 cash contribution from the owners 2. The company purchased $36,000 of direct raw materials and $900 of indirect materials, Indirect materials are capitalized in the Production Supplies account 3. Direct materials totaling $14,000 were issued to the cutting department 4. Labor cost was $52,800. Direct labor for the cutting and assembly departments was $19.000 and $25,000, respectively. Indirect labor costs were $8,800. 5. The predetermined overhead rate was $0.50 per direct labor dollar in each department 6. Actual overhead costs other than indirect materials and indirect labor were $13,000 for the year, 7. The cutting department transferred $24,000 of inventory to the assembly department 8. The assembly department transferred $39,000 of inventory to finished goods. 9. The company sold Inventory costing $34,000 for $65,000 10. Selling and administrative expenses were $4,000. 11. A physical count revealed $100 of production supplies on hand at the end of 2018 12. Assume that over- or underapplied overhead is insignificant Required: a. Record the data in T-accounts b. Record the closing entry for over or underapplied manufacturing overhead, assuming that the amount is insignificant c. Close the revenue and expense accounts d. Prepare a schedule of cost of goods manufactured and sold, an income statement and a balance sheet for 2018 Complete this question by entering your answers in the tabs below. Prey 5 of 7 Next > Chapter 12 HW Reg A to C R COMRE D Inc Sched Sunt Reg D Bal Sheet Record the data in accounts. Record the closing entry for over or underapplied manufacturing overhead, assuming that the amount Close the revenue and expense accounts. 1428 Doints Common Stock eBook End bal References End, bal Raw Materials Retained Earnings End, bal End bal. Manufacturing Overhead Revenue End bal en bal net nf Gore. Sell End. bal End. bal eBook End. bal Print erences Work in process Assembly Selling & Administrative Expenses 1 End, bal End, bal. Finished Goods End. bal. Production Supplies End, bal Reg D CGM Sched > Req A to C Req D CGM Sched Reg D Inc Strnt Req D Bal Sheet Prepare a schedule of cost of goods manufactured and sold for 2018. ADAMS CORPORATION Cost of Goods Manufactured and sold for 2018 Book Print erences Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available Cost of goods sold
