Perez Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $8,000 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $1,300 2,400 3,200 $6,900 Direct Labor $1,900 3,700 2,100 $7,700 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,560 cash. Perez paid $700 for selling and administrative expenses. Actual factory overhead was $5,020. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, income statement, and a balance sheet for Year 1. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Raw Material Manufacturing Overhead Cash Work In Process Finished Goods Equity Common Retained Stock Earnings 55,000 + Revenue Expense = Net Income 55,000 + + + + = - + + + + 1 = + 1 + + + + + +1 + + + + 55,000 + 0 + 0 + 0 + 0 0 = 55,000 + 0 0 0 = 0 Perez Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $8,000 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $1,300 2,400 3,200 $6,900 Direct Labor $1,900 3,700 2,100 $7,700 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,560 cash. Perez paid $700 for selling and administrative expenses. Actual factory overhead was $5,020. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, income statement, and a balance sheet for Year 1. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Req A and C Reg D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Raw Material Manufacturing Overhead Cash Work In Process Finished Goods Equity Common Retained Stock Earnings 55,000 + Revenue Expense = Net Income 55,000 + + + + = - + + + + 1 = + 1 + + + + + +1 + + + + 55,000 + 0 + 0 + 0 + 0 0 = 55,000 + 0 0 0 = 0
