Solomon Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $6,600 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.)
| | Direct Raw Materials Used | Direct Labor |
| Job 1 | | $ | 900 | | | $ | 1,900 | |
| Job 2 | | | 1,900 | | | | 3,800 | |
| Job 3 | | | 2,800 | | | | 2,100 | |
| Total | | $ | 5,600 | | | $ | 7,800 | |
| |
Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $9,960 cash. Solomon paid $500 for selling and administrative expenses. Actual factory overhead was $5,180.
Required
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a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.
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c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant.
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d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1.
Solomon Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $6,600 of raw materials and worked on three job orders during Year 1 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $ 900 1,900 2,800 $5,600 Direct Labor $1,900 3,800 2,100 $7,800 Factory overhead is applied using a predetermined overhead rate of $0.60 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $9,960 cash. Solomon paid $500 for selling and administrative expenses. Actual factory overhead was $5,180. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for Year 1. Complete this question by entering your answers in the tabs below. Reg A and C Req D CGM Sched Reg D Inc Stmt Reg D Bal Sheet Record the preceding events in a horizontal statements model. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that t amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individually. Enter any decreases to account balance with a minus sign.) Equity Assets Raw Material Cash Manufacturing Overhead + Work In Process . Finished Goods Revenue Expense = Net Income Common T. Retained Stock Earnings 70,000 + 70,000+ - - - + + + + + . + + + + + = 1+1 = -1 LP + +1 = + + 1-1 + + = = 11 - + + +1 = + + -1 + + + = 1 = 11 + +1 + + + I = + + - + 70,000 + 0+ 0 + 0 0 = 70,000+ 0 0 0 Complete this question by entering your answers in the tabs below. Req D CGM Req D Inc Reg A and c Reg D Bal Sched Stmt Sheet Prepare a schedule of cost of goods manufactured and sold for Year 1. SOLOMON MANUFACTURING CORPORATION Cost of Goods Manufactured and sold for Year 1 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 0 Cost of goods sold s 0 Complete this question by entering your answers in the tabs below. Req A and C Reg D CGM Req D Inc Sched Stmt Prepare an income statement for Year 1. Reg D Bal Sheet SOLOMON MANUFACTURING CORPORATION Income Statement for Year 1 0 0 Complete this question by entering your answers in the tabs below. Reg D Bal Sheet Req A and Reg D CGM Req D Inc Sched Stmt Prepare a balance sheet for Year 1. SOLOMON MANUFACTURING CORPORATION Balance Sheet for Year 1 Assets Total assets $ Equity Total equity s
