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Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + + b. Prepare a schedule of cost of goods manufactured and sold. CONWAY MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold 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

Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + + b. Prepare a schedule of cost of goods manufactured and sold. CONWAY MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Just part b, please. 

Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + +
Transcribed Image Text:Conway Manufacturing Company was started on January 1, 2014. The company was affected by the following events during its first year of operation. 1. Acquired $2,500 cash from the issue of common stock. 2. Paid $580 cash for direct raw materials. 3. Transferred $410 of direct raw materials to work in process. 4. Paid production employees $640 cash. 5. Paid $380 cash for manufacturing overhead costs. 6. Applied $230 of manufacturing overhead costs to work in process. 7. Completed work on products that cost $1,050. 8. Sold products that cost $890 for $1,640 cash. 9. Paid $330 cash for selling and administrative expenses. 10. Made a $80 cash distribution to the owners. 11. Closed the Manufacturing Overhead account. Required: a. Record these events in a horizontal statements model. The first event is shown as an example. (Enter decreases to account balances with a minus sign.) Assets Equity Manufacturing Overhead Work in Finished Goods Common Event Raw Retained Net Cash Revenue Expense %3D Stock No. Materials Process Earnings Income $ 2,500 + $2,500 + 1. 2. 3. %3D 4. %3D 5. %3D 6. 7. %3D 8a. %3D 8b. 9. %3D 10. %3D 11. %3D Total II IL|| II + + +|+ + + + + + II |+ + | + + + + | + +|+ +| ++ + + + + ++ + + + + + +| + + +
b. Prepare a schedule of cost of goods manufactured and sold. CONWAY MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold 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
Transcribed Image Text:b. Prepare a schedule of cost of goods manufactured and sold. CONWAY MANUFACTURING COMPANY Schedule of Cost of Goods Manufactured and Sold 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
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