Moreno 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 2015 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Direct Used Labor $ 1,400 2,100 3,400 $2,000 3,900 1,800 Job 1 Job 2 Job 3 $ 7,700 $6,900 Total Factory overhead is applied using a predetermined overhead rate of $0.50 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,600 cash. Moreno paid $500 for selling and administrative expenses. Actual factory overhead was $4,350. Required: a.b.&c. Record the preceding events and the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model. Reconcile all subsidiary accounts with their respective control accounts. (Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Equity Finished Common Retained Earnings Manufacturing Raw Overhead Material Work In Net Income Cash Revenue-Expense = Process Goods Stock 0+| 이에 이크 55,000 + 이 이ㅋ 55,000|+
Moreno 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 2015 for which data follow. (Assume that all transactions are for cash unless otherwise indicated.) Direct Raw Materials Direct Used Labor $ 1,400 2,100 3,400 $2,000 3,900 1,800 Job 1 Job 2 Job 3 $ 7,700 $6,900 Total Factory overhead is applied using a predetermined overhead rate of $0.50 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $10,600 cash. Moreno paid $500 for selling and administrative expenses. Actual factory overhead was $4,350. Required: a.b.&c. Record the preceding events and the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model. Reconcile all subsidiary accounts with their respective control accounts. (Enter costs of each job individually. Enter any decreases to account balances with a minus sign.) Assets Equity Finished Common Retained Earnings Manufacturing Raw Overhead Material Work In Net Income Cash Revenue-Expense = Process Goods Stock 0+| 이에 이크 55,000 + 이 이ㅋ 55,000|+
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Moreno 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 2015 for which data follow. (Assume that all transactions are
for cash unless otherwise indicated.)
Direct Raw
Materials
Direct
Used
Labor
$ 1,400
2,100
3,400
$2,000
3,900
1,800
Job 1
Job 2
Job 3
$ 7,700
$6,900
Total
Factory overhead is applied using a predetermined overhead rate of $0.50 per
direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3
was sold for $10,600 cash. Moreno paid $500 for selling and administrative
expenses. Actual factory overhead was $4,350.
Required:
a.b.&c. Record the preceding events and the closing entry for over- or
underapplied manufacturing overhead in the horizontal statements
model. Reconcile all subsidiary accounts with their respective control
accounts. (Enter costs of each job individually. Enter any decreases to
account balances with a minus sign.)
Assets
Equity
Finished Common Retained
Earnings
Manufacturing Raw
Overhead Material
Work In
Net
Income
Cash
Revenue-Expense =
Process
Goods
Stock
0+|
이에
이크
55,000 +
이
이ㅋ 55,000|+
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