Vernon Manufacturing started in 2018 with the following account balances: Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (380 units @ $5.95 each) $6,000 5,151 5,400 1,400 890 2,261 Transactions during 2018 1. Purchased $2,890 of raw materials with cash. 2. Transferred $3,770 of raw materials to the production department. 3. Incurred and paid cash for 240 hours of direct labor @ $15.30 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.00 per direct labor hour. 5. Incurred actual overhead costs of $4,000 cash. 6. Completed work on 1,250 units for $6.00 per unit. 7. Paid $1,160 in selling and administrative expenses in cash. 8. Sold 1,250 units for $10,600 cash revenue (assume FIFO cost flow). 9. Vernon 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. b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018. Req A Reg B CGM Sched Req B Inc Stmt Req B Bal Sheet 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.) Event No. B.B. Cash $ 6,000 + Revenue - Expense = Net Income Manufacturing, Overhead + Assets Raw . Materials * $ 1,400 + Work in , Process $ 890 + Equity Finished - Common . Retained Goods * Stock * Earnings $ 2,261 = $ 5,151 + $ 5,400 + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Total + + + + + ReqA Req B CGM Sched > 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 a balance sheet for 2018. VERNON MANUFACTURING COMPANY Balance Sheet At December, 2018 Assets Total assets Equity Total equity 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 2018. VERNON MANUFACTURING COMPANY Income Statement For the Year Ended December, 2018 Reg A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare a schedule of cost of goods manufactured and sold for 2018. VERNON MANUFACTURING COMPANY Cost of Goods Manufactured and Sold For the Year Ended December, 2018 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Cost of goods sold ReqA Req B Inc Stmt>
