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Prepare a schedule of cost of goods manufactured and sold.Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following
Prepare a schedule of cost of goods manufactured and sold.Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. |
1. | Acquired $2,000 cash from the issue of common stock. |
2. | Paid $600 cash for direct raw materials. |
3. | Transferred $400 of direct raw materials to work in process. |
4. | Paid production employees $600 cash. |
5. | Paid $300 cash for manufacturing overhead costs. |
6. | Applied $245 of manufacturing overhead costs to work in process. |
7. | Completed work on products that cost $1,000. |
8. | Sold products that cost $800 for $1,400 cash. |
9. | Paid $400 cash for selling and administrative expenses. |
10. | Made a $50 cash distribution to the owners. |
11. | Closed the Manufacturing Overhead account. |
Required: |
a. | Record these events in a horizontal statements model. |
b. Prepare a schedule of cost of goods manufactured and sold.
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