Blanding Manufacturing started in Year 2 with the following account balances. Cash Common stock Retained earnings $5,100 4,445 5,900 2,200 Work in process inventory 860 Finished goods inventory (380 units @ $5.75 each) 2,185 Raw materials inventory Transactions during Year 2 1. Purchased $2,910 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 @ $15.70 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.20 per direct labor hour. 5. Incurred actual overhead costs of $3,800 cash. 6. Completed work on 1,210 units for $5.90 per unit. 7. Paid $1,060 in selling and administrative expenses in cash. 8. Sold 1,210 units for $10,500 cash revenue (assume FIFO cost flow). 9. Blanding 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-1. Prepare a schedule of cost of goods manufactured and sold for Year 2. b-2. Prepare an income statement for Year 2. b-3. Prepare a balance sheet for Year 2. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3
Blanding Manufacturing started in Year 2 with the following account balances. Cash Common stock Retained earnings $5,100 4,445 5,900 2,200 Work in process inventory 860 Finished goods inventory (380 units @ $5.75 each) 2,185 Raw materials inventory Transactions during Year 2 1. Purchased $2,910 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 @ $15.70 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.20 per direct labor hour. 5. Incurred actual overhead costs of $3,800 cash. 6. Completed work on 1,210 units for $5.90 per unit. 7. Paid $1,060 in selling and administrative expenses in cash. 8. Sold 1,210 units for $10,500 cash revenue (assume FIFO cost flow). 9. Blanding 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-1. Prepare a schedule of cost of goods manufactured and sold for Year 2. b-2. Prepare an income statement for Year 2. b-3. Prepare a balance sheet for Year 2. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req B3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blanding Manufacturing started in Year 2 with the following account balances.
Cash
Common stock
Retained earnings
$5,100
4,445
5,900
2,200
Work in process inventory
860
Finished goods inventory (380 units @ $5.75 each)
2,185
Raw materials inventory
Transactions during Year 2
1. Purchased $2,910 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 @ $15.70 per hour.
4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.20 per
direct labor hour.
5. Incurred actual overhead costs of $3,800 cash.
6. Completed work on 1,210 units for $5.90 per unit.
7. Paid $1,060 in selling and administrative expenses in cash.
8. Sold 1,210 units for $10,500 cash revenue (assume FIFO cost flow).
9. Blanding 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-1. Prepare a schedule of cost of goods manufactured and sold for Year 2.
b-2. Prepare an income statement for Year 2.
b-3. Prepare a balance sheet for Year 2.
Complete this question by entering your answers in the tabs below.
Req A
Req B1
Req B2
Req B3
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