Question
Munoz Manufacturing Company was started on January 1, 2018. The company was affected by the following events during its first year of operation: Acquired $1,700
Munoz Manufacturing Company was started on January 1, 2018. The company was affected by the following events during its first year of operation:
Acquired $1,700 cash from the issue of common stock.
Paid $540 cash for direct raw materials.
Transferred $420 of direct raw materials to work in process.
Paid production employees $650 cash.
Paid $370 cash for manufacturing overhead costs.
Applied $220 of manufacturing overhead costs to work in process.
Completed work on products that cost $1,070.
Sold products that cost $820 for $1,630 cash.
Paid $400 cash for selling and administrative expenses.
Made a $70 cash distribution to the owners.
Closed the Manufacturing Overhead account.
Required
Record these events in a horizontal statements model. The first event is shown as an example.
Prepare a schedule of cost of goods manufactured and sold.
Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.)
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Prepare a schedule of cost of goods manufactured and sold.
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Financial Accounting A User Perspective
Authors: Robert E. Hoskin, Maureen R. Fizzell, Donald C. Cherry
4th Canadian Edition
0470834455, 978-0470834459
