ROONEY MANUFACTURING COMPANY Cost of Goods Manufactured and Sold For Year 1 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Goods available for sale Cost of goods sold Problem 11-18A (Algo) Manufacturing cost flow for monthly and annual accounting periods LO 11-1, 11-2, 11-3 Evelyn Rooney started Rooney Manufacturing Company to make a universal television remote control device that she had invented. The company's labor force consisted of part-time employees. The following accounting events affected Rooney Manufacturing Company during its first year of operation. (Assume that all transactions are cash transactions unless otherwise stated.) Transactions for January Year 1. First Month of Operation 1. Issued common stock for $11,000. 2. Purchased $405 of direct raw materials and $65 of production supplies. 3. Used $256 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 $142 for salaries to administrative and sales staff. 7. Paid $21 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 75 remote controls at a price of $21.40 each. Transactions for Remainder of Year 1 11. Acquired an additional $18.500 by issuing common stock 12. Purchased $3.910 of direct raw materials and $925 of production supplies. 13. Used $2.990 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 $1,551 for salaries of administrative and sales staff. 17. Paid $244 of indirect manufacturing labor cost. 18. Paid $2.420 for rental and utility costs on the manufacturing facilities. 19. Transferred 850 additional remote controls that cost $12.72 each from the Work in Process Inventory account to the Finished Goods Inventory account. 20. Determined that $166 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 a. For each of the above transactions, post the effects to the appropriate T-accounts. b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1. Cash Common Stock Raw Materials Retained Earnings End. bal. End, be Manufacturing Overhead Sales Revenue End. bal. 0 0 Work in Process Cost of Goods Sold End. bal End, bal Finished Goods Selling and Administrative Expenses End. bal. End, be Production Supplies End. bal. Complete this question by entering your answers in the tabs below. Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare an income statement for Year 1. (Do not round intermediate calculations.) ROONEY MANUFACTURING COMPANY Income Statement For Year 1 Complete this question by entering your answers in the tabs below. Reg A Req B CGM Sched Req B Inc Stmt Reg B Bal Sheet Prepare a balance sheet for Year 1. (Do not round intermediate calculations.) ROONEY MANUFACTURING COMPANY Balance Sheet At the end of Year 1 Assets Total assets Equity Total equity