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Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. Balance Sheet Income Statement Assets Equity %3D Raw F. С. Cash + М. + МОН + WIP + Goods Stk. + Ret. Ear. Rev. Exp. = Net Inc. 60,000 + NA + NA + NA + NA 60,000 + NA NA NA NA b. Reconcile all subsidiary accounts with their respective control accounts. 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.

Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. Balance Sheet Income Statement Assets Equity %3D Raw F. С. Cash + М. + МОН + WIP + Goods Stk. + Ret. Ear. Rev. Exp. = Net Inc. 60,000 + NA + NA + NA + NA 60,000 + NA NA NA NA b. Reconcile all subsidiary accounts with their respective control accounts. 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.

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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**Required** a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. --- **Balance Sheet** | Assets | = | Equity | |-----------------|---|---------------------------------| | Cash + Raw M. + MOH + WIP + F. Goods | = | C. Stk. + Ret. Ear. | | 60,000 + NA + NA + NA + NA | = | 60,000 + NA | **Income Statement** | Rev. - Exp. = Net Inc.| |-----------------------| | NA - NA = NA | --- b. Reconcile all subsidiary accounts with their respective control accounts. 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.
Transcribed Image Text:**Required** a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. --- **Balance Sheet** | Assets | = | Equity | |-----------------|---|---------------------------------| | Cash + Raw M. + MOH + WIP + F. Goods | = | C. Stk. + Ret. Ear. | | 60,000 + NA + NA + NA + NA | = | 60,000 + NA | **Income Statement** | Rev. - Exp. = Net Inc.| |-----------------------| | NA - NA = NA | --- b. Reconcile all subsidiary accounts with their respective control accounts. 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.
**CHECK FIGURE** - d. COGM: $29,700 - NI: $6,300 --- **Problem 12-13A: Job-order costing system** Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 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.) _Page 568_ **Table: Direct Raw Materials Used and Direct Labor** | Job | Direct Raw Materials Used | Direct Labor | |------|---------------------------|--------------| | Job 1| $2,800 | $6,000 | | Job 2| $4,000 | $8,000 | | Job 3| $6,000 | $4,000 | | **Total** | $12,800 | $18,000 | 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 $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300.
Transcribed Image Text:**CHECK FIGURE** - d. COGM: $29,700 - NI: $6,300 --- **Problem 12-13A: Job-order costing system** Lehigh Manufacturing Corporation was started with the issuance of common stock for $60,000. It purchased $14,000 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.) _Page 568_ **Table: Direct Raw Materials Used and Direct Labor** | Job | Direct Raw Materials Used | Direct Labor | |------|---------------------------|--------------| | Job 1| $2,800 | $6,000 | | Job 2| $4,000 | $8,000 | | Job 3| $6,000 | $4,000 | | **Total** | $12,800 | $18,000 | 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 $20,000 cash. Lehigh paid $800 for selling and administrative expenses. Actual factory overhead was $11,300.
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