Question
Rooney Manufacturing started in Year 2 with the following account balances. Cash $5,700 Common stock $4,877 Retained earnings $5,300 Raw materials $1,600 Work in process
Rooney Manufacturing started in Year 2 with the following account balances.
Cash | $5,700 |
Common stock | $4,877 |
Retained earnings | $5,300 |
Raw materials | $1,600 |
Work in process inventory | $820 |
Finished goods inventory (340 units @ $6.05 each) | $2,057 |
Transactions during Year 2
1. Purchased $2,920 of raw materials with cash.
2. Transferred $3,830 of raw materials to the production department.
3. Incurred and paid cash for 240 hours of direct labor @ $15.20 per hour.
4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.50 per direct labor hour.
5. Incurred actual overhead costs of $4,000 cash.
6. Completed work on 1,240 units for $5.60 per unit.
7. Paid $1,150 in selling and administrative expenses in cash.
8. Sold 1,240 units for $10,500 cash revenue (assume FIFO cost flow).
9. Rooney charges overapplied or underapplied overhead directly to Cost of Goods Sold.
Required
a. Record the preceding events in a horizontal statements model. The beginning balances are shown as an example.
\begin{tabular}{|l||c|c|c|} \hline Req A & ReqBCGMSched & ReqBIncStmt & ReqBBalSheet \\ \hline \end{tabular} Record the preceding events in a horizontal statements model. The beginning balances are shown as an example. (Enter decreases to account balances with a minus sign.)Step by Step Solution
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