LO 11-1, 11-2, 11-3 Problem 11-19B Manufacturing cost flow for one-par period Meadowbrook Manufacturing started Yeir 2 with the following account balance Cash Common stock Retained earrings Raw materials inventory Work in process inventory Finished goods inventory (50 units 57 20/unit $7,000 5,600 2,800 600 440 350 Transactions during Year 2 1. Purchased $1.600 of raw materials with cash 2. Transferred $1,000 of raw materials to the production department 3. Incurred and paid cash for 80 hours of direct labor at $15 per hour 4. Applied overhead costs to Work in Process Inventory. The predetermined overhead rate is $15 per direct labor hour 5. Incurred actual overhead costs of $1,300 cash. 6. Completed work on 300 units for $7.20 per unit 7. Paid $400 in selling and administrative expenses in cash. 8. Sold 200 units for $3.000 cash revenues (Assume LIFO cost flow.) Meadowbrook charges overapplied or underapplied overhead directly to Cost of Goods Sold Required 3. Record the preceding events in a horizontal statements model The beginning balances are shown as an example. Balance Sheet Income Statement Assets Equity Event No. Cash + MOH + Raw M. + WIP + F. Goods = C. Stk. + Ret. Ear. Rev. Exp. = Net Inc. 1. 7,000+ NA + 600 + 440 + 360 5,600 + 2.800 NA NA NA b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 2 H J KL M N 0 P 0 RS U Requirement a Income Statement Finished Cash MOH Balance Sheet Work in Process + 440 + + + Common Stock 5,600 Revenue Raw + Materials 600 1,600 Retained Earnings 2,800 Expenses Net Income Inventory 360 7,000 (1.600) (1,000) (1,200) (1,200) 1,000 1,200 (1,200) (2,160) 2,160 Event Number Beg. Balance 1. Purchased direct raw materials 2. Transferred direct raw mat'ls to WIP 3. Paid production employees 4. Applied overhead to WIP 5. Completed work on products 6a. Sold products revenue 6b. Sold products - Cost of Goods Sold 7. Paid for selling and admin. Expenses 8. Paid actual overhead 9. Closed Mfg Overhead account 10. Paid dividends Total 3,000 3,000 3,000 3,000 (400) (1,300) 1 300 5,600 (720) 2,520 5,800 3,000 100 5.500 3,000 1,200 Requirement b Manufactured and Sold