LO 11-1, 11-2.1 problem 11-178 Manufacturing cost flow across three accounting cycles The following accounting events affected Carmel Manufacturing Comey during its first three years oration. Assume that all transactions are cash t estins. Transactions for 2017 1. Surted manufacturing company by issuing common stock for $1,000 Purchased $300 of direct raw materials Used $216 of direct raw materials to produce inventory. Paid $180 of direct labor wages to employees to make inventory. Applied $180 of manufacturing overhead to Work in Process Inventory Actual manufacturing overhead costs amounted to $183. 1. Finished work on inventory that cost $324 & Sold goods that cost $216 for $288. Puid S18 for selling and administrative expenses. Transactions for 2018 1. Acquired additional $300 of cash from issuance of common stock 1 Purchased $288 of direct raw materials 3 Used $252 of direct raw materials to produce inventory. 4. Paid $216 of direct labor wages to employees to make inventory. 3Applied S192 of manufacturing overhead to Work in Process Inventory. 6. Actual manufacturing overhead costs amounted to $189. 7. Finished work on inventory that cost $540. 8. Sold goods that cost $504 for $576. 9. Paid $36 for selling and administrative expenses. Transactions for 2019 1. Purchased S180 of direct raw materials. 2. Used $288 of direct raw materials to produce inventory. 3. Paid $108 of direct labor wages to employees to make inventory. 4. Applied $150 of manufacturing overhead to Work in Process Inventory 5. Actual manufacturing overhead costs amounted to $156. 6. Finished work on inventory that cost $594. 7. Sold goods that cost $648 for $792. & Paid $72 for selling and administrative expenses. 9. Paid a cash dividend of $144. Required Record the preceding events in a horizontal statements model. Close overapplied or underapplied Overhead to Cost of Goods Sold. The first event is shown as an example. - Equity Assets - Exp. Net Inc. + + Cath + MOH + NA Raw M. NA WIP NA + + Goods - NA - C. Stk. + 1,000 + Retta NA NA - NA NA Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance weet as of the close of business on December 31, 2017. ose appropriate accounts to the Retained Earnings account peat Requirements a through e for years 2018 and 2019. Close appropriate ace & Repeat Requin LO 11-1, 11-2.1 problem 11-178 Manufacturing cost flow across three accounting cycles The following accounting events affected Carmel Manufacturing Comey during its first three years oration. Assume that all transactions are cash t estins. Transactions for 2017 1. Surted manufacturing company by issuing common stock for $1,000 Purchased $300 of direct raw materials Used $216 of direct raw materials to produce inventory. Paid $180 of direct labor wages to employees to make inventory. Applied $180 of manufacturing overhead to Work in Process Inventory Actual manufacturing overhead costs amounted to $183. 1. Finished work on inventory that cost $324 & Sold goods that cost $216 for $288. Puid S18 for selling and administrative expenses. Transactions for 2018 1. Acquired additional $300 of cash from issuance of common stock 1 Purchased $288 of direct raw materials 3 Used $252 of direct raw materials to produce inventory. 4. Paid $216 of direct labor wages to employees to make inventory. 3Applied S192 of manufacturing overhead to Work in Process Inventory. 6. Actual manufacturing overhead costs amounted to $189. 7. Finished work on inventory that cost $540. 8. Sold goods that cost $504 for $576. 9. Paid $36 for selling and administrative expenses. Transactions for 2019 1. Purchased S180 of direct raw materials. 2. Used $288 of direct raw materials to produce inventory. 3. Paid $108 of direct labor wages to employees to make inventory. 4. Applied $150 of manufacturing overhead to Work in Process Inventory 5. Actual manufacturing overhead costs amounted to $156. 6. Finished work on inventory that cost $594. 7. Sold goods that cost $648 for $792. & Paid $72 for selling and administrative expenses. 9. Paid a cash dividend of $144. Required Record the preceding events in a horizontal statements model. Close overapplied or underapplied Overhead to Cost of Goods Sold. The first event is shown as an example. - Equity Assets - Exp. Net Inc. + + Cath + MOH + NA Raw M. NA WIP NA + + Goods - NA - C. Stk. + 1,000 + Retta NA NA - NA NA Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance weet as of the close of business on December 31, 2017. ose appropriate accounts to the Retained Earnings account peat Requirements a through e for years 2018 and 2019. Close appropriate ace & Repeat Requin