Problem 11-18A Manufacturing cost flow for monthly and annual accounting periods LO 11-1, 11-2, 11-3

Evelyn Rundle started Rundle Manufacturing Company to make a universal television remote control device that she had invented. The companys labor force consisted of part-time employees. The following accounting events affected Rundle Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.)

Transactions for January 2018, First Month of Operation

1 Issued common stock for $10,000.

2 Purchased $430 of direct raw materials and $60 of production supplies.

3 Used $260 of direct raw materials.

4 Used 80 direct labor hours; production workers were paid $9.50 per hour.

5 Expected total overhead costs for the year to be $3,200, and direct labor hours used during the year to be 1,000. Calculate an overhead rate and apply the appropriate amount of overhead costs to Work in Process Inventory.

6 Paid $143 for salaries to administrative and sales staff.

7 Paid $23 for indirect manufacturing labor.

8 Paid $205 for rent and utilities on the manufacturing facilities.

9 Started and completed 100 remote controls during the month; all costs were transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

10 Sold 70 remote controls at a price of $21.4 each.

Transactions for Remainder of 2018

11 Acquired an additional $18,500 by issuing common stock.

12 Purchased $3,900 of direct raw materials and $905 of production supplies.

13 Used $3,000 of direct raw materials.

14 Paid production workers $9.50 per hour for 890 hours of work.

15 Applied the appropriate overhead cost to Work in Process Inventory.

16 Paid $1,554 for salaries of administrative and sales staff.

17 Paid $239 of indirect manufacturing labor cost.

18 Paid $2,410 for rental and utility costs on the manufacturing facilities.

19 Transferred 900 additional remote controls that cost $12.76 each from the Work in Process Inventory account to the Finished Goods Inventory account.

20 Determined that $167 of production supplies was on hand at the end of the accounting period.

21 Sold 860 remote controls for $21.40 each.

22 Determine whether the overhead is over- or underapplied. Close the Manufacturing Overhead account to the Cost of Goods Sold account.

23 Close the revenue and expense accounts.

Required

For each of the above transactions, post the effects to the appropriate T-accounts.

Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018.

Complete this question by entering your answers in the tabs below.

For each of the above transactions, post the effects to the appropriate T-accounts. (Do not round intermediate calculations.)

Cash					Common Stock
					End. bal.
End. bal.
Raw Materials					Retained Earnings
End. bal.					End. bal.
Manufacturing Overhead					Sales Revenue
					End. bal.	0	0
End. bal.	0	0
Work in Process					Cost of Goods Sold
					End. bal.	0	0
End. bal.
Finished Goods					Selling and Administrative Expenses
End. bal.					End. bal.	0	0
Production Supplies
End. bal.

RUNDLE MANUFACTURING COMPANY
Cost of Goods Manufactured and Sold
For the Year, 2018
Raw materials available	0
Raw materials used	0
Total manufacturing costs	0
Total work in process inventory	0
Cost of goods manufactured	0
Goods available for sale	0
Cost of goods sold	$0

Prepare an income statement for 2018. (Do not round intermediate calculations.)

Do not round intermediate calculations.

RUNDLE MANUFACTURING COMPANY
Income Statements
For the Year, 2018
	0
	$0

Req B CGM Sched

RUNDLE MANUFACTURING COMPANY
Balance Sheets
At the year ended 2018
Assets
Total assets	$0
Equity
Total equity	$0