Zachary Manufacturing started in Year 2 with the following account balances. Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (380 units @ $5.75 each) $5,300 4,075 6,000 1,700 890 2,185 Transactions during Year 2 1. Purchased $2,890 of raw materials with cash. 2. Transferred $3,820 of raw materials to the production department. 3. Incurred and paid cash for 230 hours of direct labor @ $15.10 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.40 per direct labor hour. 5. Incurred actual overhead costs of $4,000 cash. 6. Completed work on 1,260 units for $5.50 per unit. 7. Paid $1,170 in selling and administrative expenses in cash. 8. Sold 1,260 units for $10,000 cash revenue (assume FIFO cost flow). 9. Zachary 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 Year 2. Req A Req 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 mi Event No. B.B. Assets Raw Materials $ 1,700 Income Statement Revenue - Expense = Net Income Cash + Manufacturing Overhead $ 5,300 + * + Work in Process $ 890 + Finished Goods $ 2,185 = Equity Common + Retained Stock Earnings $ 4,075 + $ 6,000 8b. Total $ 5,300 + $ 0 + $ 1,700 | $ 890 + $ 2,185 = $ 4,075 $ 6,000 0 - $ Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 2. ZACHARY MANUFACTURING COMPANY Cost of Goods Manufactured and Sold For the Year Ended December, Year 2 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Req A Rega Req B CGM Sched Re Req B Inc Stmt Reg. Imerese Req B Bal Sheet Prepare an income statement for Year 2. ZACHARY MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 2 Req A Req B CGM Sched Req B Inc Stmt Reg B Bal Sheet Prepare a balance sheet for Year 2. ZACHARY MANUFACTURING COMPANY Balance Sheet At December, Year 2 Assets 0 Total assets Equity Total equity $ 0 Zachary Manufacturing started in Year 2 with the following account balances. Cash Common stock Retained earnings Raw materials inventory Work in process inventory Finished goods inventory (380 units @ $5.75 each) $5,300 4,075 6,000 1,700 890 2,185 Transactions during Year 2 1. Purchased $2,890 of raw materials with cash. 2. Transferred $3,820 of raw materials to the production department. 3. Incurred and paid cash for 230 hours of direct labor @ $15.10 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.40 per direct labor hour. 5. Incurred actual overhead costs of $4,000 cash. 6. Completed work on 1,260 units for $5.50 per unit. 7. Paid $1,170 in selling and administrative expenses in cash. 8. Sold 1,260 units for $10,000 cash revenue (assume FIFO cost flow). 9. Zachary 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 Year 2. Req A Req 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 mi Event No. B.B. Assets Raw Materials $ 1,700 Income Statement Revenue - Expense = Net Income Cash + Manufacturing Overhead $ 5,300 + * + Work in Process $ 890 + Finished Goods $ 2,185 = Equity Common + Retained Stock Earnings $ 4,075 + $ 6,000 8b. Total $ 5,300 + $ 0 + $ 1,700 | $ 890 + $ 2,185 = $ 4,075 $ 6,000 0 - $ Req A Req B CGM Sched Req B Inc Stmt Req B Bal Sheet Prepare a schedule of cost of goods manufactured and sold for Year 2. ZACHARY MANUFACTURING COMPANY Cost of Goods Manufactured and Sold For the Year Ended December, Year 2 Raw materials available Raw materials used Total manufacturing costs Total work in process inventory Cost of goods manufactured Cost of goods available for sale Req A Rega Req B CGM Sched Re Req B Inc Stmt Reg. Imerese Req B Bal Sheet Prepare an income statement for Year 2. ZACHARY MANUFACTURING COMPANY Income Statement For the Year Ended December, Year 2 Req A Req B CGM Sched Req B Inc Stmt Reg B Bal Sheet Prepare a balance sheet for Year 2. ZACHARY MANUFACTURING COMPANY Balance Sheet At December, Year 2 Assets 0 Total assets Equity Total equity $ 0