Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Walton Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $8,000 of raw materials and worked on three job orders

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Walton Manufacturing Corporation was started with the issuance of common stock for $55,000. It purchased $8,000 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 RAM Materials Used $1,400 2,200 3,300 $6.900 Direct Labor $2,000 3,700 1,900 $7,600 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 $10,240 cash. Walton paid $600 for selling and administrative expenses. Actual factory overhead was $5,160. 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. 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 amount is insignificant. The first event for Year 1 has been recorded as an example. (Record each item separately. Enter costs of each job individ with a minus sign.) Equity Assets Manufacturing Raw Work in Finished Common Retained Cash Ravenue Expense Not Income Overhead Material Process Goods Stock Earnings 55,000 55,000 55,000 55.000 + 0 - 55,000 Prepare a schedule of cost of goods manufactured and sold for Year 1. WALTON MANDEACTURING CORPORATION Cost of Goods Manufactured and sold for year Raw materials available 0 Raw materials used 0 0 Total manufacturing costs Total work in process inventory 0 Cost of goods manufactured 0 Goods available $ 0 Cost of goods sold Complete this question by entering your answers in the tabs below. Req A and C Req D CGM Sched Req D Inc Stmt Reg D Bal Sheet Prepare an income statement for Year 1. WALTON MANUFACTURING CORPORATION Income Statement for Year 1 0 Req A and C Reg D CGM Sched Req D Inc Stmt Reg D Bal Sheet Prepare a balance sheet for Year 1. WALTON MANUFACTURING CORPORATION Balance Sheet for Year 1 Assets Total assets $ 0 Equity $ 0 Total equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Internet Supply Chain Impact On Accounting And Logistics

Authors: D. Chorafas

5th Edition

0333949633, 9780333949634

More Books

Students also viewed these Accounting questions

Question

4. Is crime caused by mental illness?

Answered: 1 week ago

Question

5. Explain the supervisors role in safety.

Answered: 1 week ago