Natalie Nelson started Nelson Frame Company (NFC) to make a unique picture frame that she had invented. Ms. Nelson employs part-time workers as she needs them. Accounting information relevant to NFCs first month of operation follows. Assume all transactions are cash transactions unless otherwise stated.

Events 12 through 23 pertain to February through December of the first year.

12. NFC acquired an additional $40,000 by issuing common stock.

13. Purchased $12,500 of direct raw materials.

14. Used $11,600 of direct raw materials.

15. Paid direct labor production workers $8 per hour for 1,310 hours of work.

16. Applied the appropriate amount of overhead cost to work in process inventory.

17. Purchased $500 of production supplies.

18. Paid $8,900 for rental of manufacturing facility and equipment.

19. The company transferred 5,200 additional frames that cost $5 each from work in process to finished goods.

20. Sold 4,900 frames at a price of $9 each.

21. Paid $5,600 for general, selling, and administrative expenses.

22. There was $150 of production supplies on hand at the end of the year.

23. Determine whether overhead is over- or underapplied. Close the manufacturing overhead account to cost of goods sold (an expense).

In the Chapter 4 Homework Problem Excel workbook:

A. Records these events in the transactions analysis model on the TA Tab

2. Prepare journal entries for each transaction on the JE Tab

3. Prepare a schedule of cost of goods manufactured and sold in the CGM-CGS Tab

D. Prepare an income statement and a balance sheet for NFCs first year of operation in the FS Tab