Finch Manufacturing started in 2018 with the following account balances Cash $ 5,300 Common stock 4,313 Retained earnings 5,900 Raw materials inventory 1,700 Work in process inventory 840 Finished goods inventory (420 units $5 65 each) 2,373 Transactions during 2018 Purchased $2,910 of raw materials with cash Transferred $3,830 of raw materials to the production department Incurred and paid cash for 190 hours of direct labor $15 10 per hour Applied overhead costs to the Work in Process Inventory account The predetermined overhead rate is $16 00 per direct labor hour Incurred actual overhead costs of $3,300 cash Completed work on 1,250 units for $5 70 per unit Paid $1,190 in selling and administrative expenses in cash Sold 1,250 units for $10,000 cash revenue (assume FIFO cost flow) Finch charges overapplied or underapplied overhead directly to Cost of Goods Sold Required (Please do NOT handwrite this) Record the preceding events in a horizontal statements model The beginning balances are shown as an example Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018 Req B CGNM Sched Req A Req B Inc Stmt Req B Bal Sheet Record the preceding events in a horizontal statements modelThe beginning balances are shown as an exarnple (Enter decreases to account balances with a minus sign ) Equity Assets Retained Earnings Net Income Work in Process Finished Common 9 RevenueExpens Raw Materials Event Cash Overhead Manufacturing Stock Goods No B B 5,300 $ 1,700$840 2,373$ 4,313 5,900 8b Total ReqA Req B CGM Sched

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 14, 2024

Finch Manufacturing started in 2018 with the following account balances: Cash $ 5,300 Common stock 4,313 Retained earnings 5,900 Raw materials inventory 1,700 Work in

Finch Manufacturing started in 2018 with the following account balances:


Cash	$	5,300
Common stock		4,313
Retained earnings		5,900
Raw materials inventory		1,700
Work in process inventory		840
Finished goods inventory (420 units @ $5.65 each)		2,373

Transactions during 2018

Purchased $2,910 of raw materials with cash.
Transferred $3,830 of raw materials to the production department.
Incurred and paid cash for 190 hours of direct labor @ $15.10 per hour.
Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.00 per direct labor hour.
Incurred actual overhead costs of $3,300 cash.
Completed work on 1,250 units for $5.70 per unit.
Paid $1,190 in selling and administrative expenses in cash.
Sold 1,250 units for $10,000 cash revenue (assume FIFO cost flow).
Finch charges overapplied or underapplied overhead directly to Cost of Goods Sold.

Required (Please do NOT handwrite this)

Record the preceding events in a horizontal statements model. The beginning balances are shown as an example.
Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018.

image text in transcribed

Req B CGNM Sched Req A Req B Inc Stmt Req B Bal Sheet Record the preceding events in a horizontal statements modelThe beginning balances are shown as an exarnple. (Enter decreases to account balances with a minus sign.) Equity Assets Retained Earnings Net Income Work in Process Finished_ Common+ 9 RevenueExpens Raw + Materials Event Cash Overhead Manufacturing Stock Goods No B.B.5,300+ +$ 1,700$840 2,373$ 4,313 5,900 8b. Total ReqA Req B CGM Sched>