Evelyn Walton started Walton 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 Walton Manufacturing Company during its first year of operation (Assume that all transactions are cash transactions unless otherwise stated ) Transactions for January 2018, First Month of Operation Issued common stock for $10,000 Purchased $410 of direct raw materials and $60 of production supplies Used $385 of direct raw materials Used 70 direct labor hours production workers were paid $9 70 per hour Expected total overhead costs for the year to be $3,000, 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 $144 for salaries to administrative and sales staff Paid $22 for indirect manufacturing labor Paid $215 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 80 remote controls at a price of $21 4 each Transactions for Remainder of 2018 Acquired an additional $18,000 by issuing common stock Purchased $3,910 of direct raw materials and $880 of production supplies Used $3,000 of direct raw materials Paid production workers $9 70 per hour for 900 hours of work Applied the appropriate overhead cost to Work in Process Inventory Paid $1,559 for salaries of administrative and sales staff Paid $236 of indirect manufacturing labor cost Paid $2,390 for rental and utility costs on the manufacturing facilities Transferred 850 additional remote controls that cost $12 74 each from the Work in Process Inventory account to the Finished Goods Inventory account Determined that $166 of production supplies was on hand at the end of the accounting period Sold 840 remote controls for $21 40 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 2018

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Evelyn Walton started Walton Manufacturing Company to make a universal television remote control device that she had invented. The companys labor force consisted of part-time

Evelyn Walton started Walton 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 Walton Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.)

Transactions for January 2018, First Month of Operation

Issued common stock for $10,000.
Purchased $410 of direct raw materials and $60 of production supplies.
Used $385 of direct raw materials.
Used 70 direct labor hours; production workers were paid $9.70 per hour.
Expected total overhead costs for the year to be $3,000, 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 $144 for salaries to administrative and sales staff.
Paid $22 for indirect manufacturing labor.
Paid $215 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 80 remote controls at a price of $21.4 each.

Transactions for Remainder of 2018

Acquired an additional $18,000 by issuing common stock.
Purchased $3,910 of direct raw materials and $880 of production supplies.
Used $3,000 of direct raw materials.
Paid production workers $9.70 per hour for 900 hours of work.
Applied the appropriate overhead cost to Work in Process Inventory.
Paid $1,559 for salaries of administrative and sales staff.
Paid $236 of indirect manufacturing labor cost.
Paid $2,390 for rental and utility costs on the manufacturing facilities.
Transferred 850 additional remote controls that cost $12.74 each from the Work in Process Inventory account to the Finished Goods Inventory account.
Determined that $166 of production supplies was on hand at the end of the accounting period.
Sold 840 remote controls for $21.40 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 2018.