Evelyn Adams started Adams Manufacturing Company to make a universal television remote control device that she had invented. The companys labor force consisted of part-time employees. The following accounting events affected Adams Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.)

Transactions for January Year 1, First Month of Operations

Required

1. For each of the above transactions, post the effects to the appropriate T-accounts.

2. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.

1. Issued common stock for $10,500. 2. Purchased $410 of direct raw materials and $55 of production supplies. 3. Used $264 of direct raw materials. 4. Used 80 direct labor hours: production workers were paid $9.40 per hour. 5. Expected total overhead costs for the year to be $3,200, and direct labor hours used during the year to be 1,000. Calculate an overhead rate and apply the appropriate amount of overhead costs to Work in Process Inventory. 6. Paid $141 for salaries to administrative and sales staff. 7. Paid $22 for indirect manufacturing labor. 8. Paid $220 for rent and utilities on the manufacturing facilities. 9. Started and completed 100 remote controls during the month; all costs were transferred from the Work in Process Inventory account to the Finished Goods Inventory account. 10. Sold 75 remote controls at a price of $21.40 each. Transactions for Remainder of Year 1 11. Acquired an additional $18,000 by issuing common stock. 12. Purchased $3,860 of direct raw materials and $885 of production supplies. 13. Used $2,980 of direct raw materials. 14. Paid production workers $9.40 per hour for 900 hours of work. 15. Applied the appropriate overhead cost to Work in Process Inventory. 16. Paid $1,560 for salaries of administrative and sales staff. 17. Paid $238 of indirect manufacturing labor cost. 18. Paid $2,410 for rental and utility costs on the manufacturing facilities. 19. Transferred 900 additional remote controls that cost $12.72 each from the Work in Process Inventory account to the Finished Goods Inventory account. 20. Determined that $166 of production supplies was on hand at the end of the accounting period. 21. Sold 860 remote controls for $21.40 each. 22. Determine whether the overhead is over- or underapplied. Close the Manufacturing Overhead account to the Cost of Goods Sold account. 23. Close the revenue and expense accounts. 1. Issued common stock for $10,500. 2. Purchased $410 of direct raw materials and $55 of production supplies. 3. Used $264 of direct raw materials. 4. Used 80 direct labor hours: production workers were paid $9.40 per hour. 5. Expected total overhead costs for the year to be $3,200, and direct labor hours used during the year to be 1,000. Calculate an overhead rate and apply the appropriate amount of overhead costs to Work in Process Inventory. 6. Paid $141 for salaries to administrative and sales staff. 7. Paid $22 for indirect manufacturing labor. 8. Paid $220 for rent and utilities on the manufacturing facilities. 9. Started and completed 100 remote controls during the month; all costs were transferred from the Work in Process Inventory account to the Finished Goods Inventory account. 10. Sold 75 remote controls at a price of $21.40 each. Transactions for Remainder of Year 1 11. Acquired an additional $18,000 by issuing common stock. 12. Purchased $3,860 of direct raw materials and $885 of production supplies. 13. Used $2,980 of direct raw materials. 14. Paid production workers $9.40 per hour for 900 hours of work. 15. Applied the appropriate overhead cost to Work in Process Inventory. 16. Paid $1,560 for salaries of administrative and sales staff. 17. Paid $238 of indirect manufacturing labor cost. 18. Paid $2,410 for rental and utility costs on the manufacturing facilities. 19. Transferred 900 additional remote controls that cost $12.72 each from the Work in Process Inventory account to the Finished Goods Inventory account. 20. Determined that $166 of production supplies was on hand at the end of the accounting period. 21. Sold 860 remote controls for $21.40 each. 22. Determine whether the overhead is over- or underapplied. Close the Manufacturing Overhead account to the Cost of Goods Sold account. 23. Close the revenue and expense accounts