Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 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.) Direct Raw Materials Used Direct Labor Job 1 $ 1,100 $ 2,100 Job 2 2,000 3,700 Job 3 3,400 2,100 Total $ 6,500 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example
Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 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.) Direct Raw Materials Used Direct Labor Job 1 $ 1,100 $ 2,100 Job 2 2,000 3,700 Job 3 3,400 2,100 Total $ 6,500 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $11,070 cash. Zachary paid $700 for selling and administrative expenses. Actual factory overhead was $6,130. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Zachary Manufacturing Corporation was started with the issuance of common stock for $70,000. It purchased $7,600 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.)
| Direct Raw Materials Used | Direct Labor | |||||||
| Job 1 | $ | 1,100 | $ | 2,100 | ||||
| Job 2 | 2,000 | 3,700 | ||||||
| Job 3 | 3,400 | 2,100 | ||||||
| Total | $ | 6,500 | $ | 7,900 | ||||
Factory
Required
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a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example.
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