Comprehensive Problem (Algo) LO 11-1, 11-2, 11-3, 11-4 Vernon Modems, Inc. acquired a subsidiary named Anywhere, Inc. (Al). Al 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 Rav saterials inventory Work in process inventory Finished goods inventory Common stock Retained earnings Totals $184,600 3,680 5,530 6,450 $119,060 81,200 $200,260 $200,260 The subsidiary completed the following transactions during Year 2 1. Pald $55,380 cash for direct raw materials. 2. Transferred $46,160 of direct raw materials to work in process 3. Pald production employees $73,860 cash. 4. Applied $48,910 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $150,410. 6. Sold products that cost $131,950 for $167,950 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b. 7. Paid $18,450 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $50,710. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied overhead was insignificant (Immaterial). 10. Made a $4,580 cash distribution to the owners. Required a. For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. b. Prepare a schedule of cost of goods manufactured and sold, c. Prepare an income statement and a balance sheet. Complete this question by entering your answers in the tabs below. ROGA Reg Reg C Inc Stit Reg C Ball Sheet For Anywhere, Inc., record the events in a financial statements model. The first event is shown as an example. (Enter decreases to account balances with am Income Statement Revenue - Expense Net Income Cash Event ND Beg Ba Manufacturing Overhead Work in Equity Finished Common Retained Goods Stock Earnings $ 6,450 $ 119,060 $ 81.200 $ 184,600 (55,380) S Balance Sheet Assets Raw Materials $ 3.6801 5,5301 55,380 (46.160) + 46.160 - 73,8601 48 9101 (150 410) (73,860) (48,910) 150 410 167 950 167 950 2 3. 4. 5. ba Bb 2 8. 9. 10 Total 167,950 (131,950) (18.450) + 131.950) + 167.950 (131,950) (18,450) + (18,450) (50,710) + 131.950 18,450 50,7101+ (1.800) 1,800 (1.800) . - + (4,580) $ 149,570 (1.800) (4.580) $ 92.370 $ OS 12.900 $ 24 050 $ 24.910 $ 119.00 $ 167,950 $ 152,200 $ 15,750 Reg> the tabs below. Reg A Reg B Reg C Inc Stmt Req C Bal Sheet Prepare a schedule of cost of goods manufactured and sold. ANYWHERE, INC. Schedule of Cost of Goods Manufactured and Sold For Year Ended December, 31 Year 2 Raw materials available for use 0 Direct raw materials used Total manufacturing costs 0 Total work in process inventory Cost of goods manufactured 0 Cost of goods available for sale 0 Cost of goods sold
