Evelyn Benson started Benson 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 Benson 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 Operation

Issued common stock for $11,000.

Purchased $415 of direct raw materials and $65 of production supplies.

Used $383 of direct raw materials.

Used 70 direct labor hours; production workers were paid $9.50 per hour.

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.

Paid $142 for salaries to administrative and sales staff.

Paid $20 for indirect manufacturing labor.

Paid $210 for rent and utilities on the manufacturing facilities.

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.

Sold 75 remote controls at a price of $21.60 each.

Transactions for Remainder of Year 1

Acquired an additional $17,500 by issuing common stock.

Purchased $3,920 of direct raw materials and $910 of production supplies.

Used $3,010 of direct raw materials.

Paid production workers $9.50 per hour for 900 hours of work.

Applied the appropriate overhead cost to Work in Process Inventory.

Paid $1,558 for salaries of administrative and sales staff.

Paid $243 of indirect manufacturing labor cost.

Paid $2,400 for rental and utility costs on the manufacturing facilities.

Transferred 900 additional remote controls that cost $12.72 each from the Work in Process Inventory account to the Finished Goods Inventory account.

Determined that $169 of production supplies was on hand at the end of the accounting period.

Sold 850 remote controls for $21.60 each.

Determine whether the overhead is over- or underapplied. Close the Manufacturing Overhead account to the Cost of Goods Sold account.

Close the revenue and expense accounts.

Required

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

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