ROBLEMS-SERIES B Product Costing in Service and Manufacturing Entities 527 we 11-178 Manufacturing cost flow across three accounting cycles being accounting events acted Carmel M o unam during its first three Assume that tractions are shortions LO 114, 11-2, 11-3 Transactions for 2017 od manufacturing company tying common stock for $1.000 urchased $300 of direct w e $216 of direct uw materials to produce inventory S180 of direct laborwapes to employees to make inventory, ed S180 of manufacturing overhead to Work in Process Inventory manufacturing overhead costs a nd to 163 Finished work on inventory that cou 124 goods that cost $216 for $28 $18 for selling and administrative Transactions for 2018 quired additional $300 of cash from issuance of common sak Purchased $288 of direct raw materials. sed $252 of direct raw materials to produce inventory $216 of direct labor wages to employees to make inventory Applied S192 of manufacturing overhead to Work in Process Inventory Actual manufacturing overhead costs amounted to $189. Finished work on inventory that cost $540, Sold goods that cost $504 for $576 Paid $36 for selling and administrative expenses. Transactions for 2019 1. Purchased $180 of direct ww materials. 1 Used $288 of direct raw materials to produce inventory. Paid $108 of direct labor wages to employees to make inventory 4. Applied S150 of manufacturing overhead to Work in Process Inventory Actual manufacturing overhead costs amounted to $156. 6 Finished work on inventory that cost $594. 1. Sold goods that cost $648 for $792 & Paid $72 for selling and administrative expenses. 9. Paid a cash dividend of $144. Required Record the preceding events in a horizontal statements model. Close overapplied or underapplied overhead to Cost of Goods Sold. The first event is shown as an example, Equity Assets + + + Cash + 1.000. MOH NA Raw M. NA WIP NA F Goods NA - - C. Stk. 1,000 + + Ret. Ear. NA Net Inc. NA Exp. - NA - Rev. - N A - Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet as of the close of business on December 31, 2017 Close appropriate accounts to the Retained Earnings account Repeat Requirements a through c for years 2018 and 2019