Munoz Manufacturing Corporation was started with the issuance of common stock for $65,000. It purchased $7,700 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 Direct Materials Used Labor Job 1 Job 2 $1,300 2,300 3,200 $6,800 $2,200 3,900 1,900 $8,000 Job 3 Total 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 $10,440 cash. Munoz paid $400 for selling and administrative expenses. Actual factory overhead was $5.200. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. K. 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.

Munoz Manufacturing Corporation was started with the issuance of common stock for $65,000. It purchased $7,700 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 Direct Materials Used Labor Job 1 Job 2 $1,300 2,300 3,200 $6,800 $2,200 3,900 1,900 $8,000 Job 3 Total 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 $10,440 cash. Munoz paid $400 for selling and administrative expenses. Actual factory overhead was $5.200. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. K. 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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