a. Assets = Liabilities + Stockholders\' Equity Cash + MOH + Raw Materials + Wor
ID: 2599904 • Letter: A
Question
a. Assets = Liabilities + Stockholders' Equity Cash + MOH + Raw Materials + Work in Process + Finished Goods Inv. = Accounts Payable + Common Stock + Retained Earnings Income Statement Net Income Revenues Expenses = 1 2 3 4 5 6a. 6b. 7 8 9 10 Total APREHENSIVE PROBLEM COMPREH Product Costing in Service and Manufacturing Entities Magnificent Mode A wireless modem Modems, Inc., acquired in subsidiary wamed Anywhere, Inc. (). Al manufactures dem that enables users to access the Internet through cell phones, The following n from die vecounts of the subsidiary, trial bulance w $200,000 Cash Raw materials inventory work in process irwertory Finished goods inventory Common stock Retained earnings 4,000 6,000 7,000 Totals $129,000 $217,000 _88,000 $217,000 sidiary completed the following transactions during 2014. The subsidiary comple sis L. Paid S60.000 cash for direct raw materials ansferred $50,000 of direct raw materials to work in process. 3. Paid production employees S80,000 cash. Anplied $53,000 of manufacturing overhead costs to work in process. 5. Completed work on products that cost $163,000. sold products that cost S143,000 for $182,000 cash. Record the recognition of revenue in a row labeled ba and the cost of goods sold in a row labeled 6b. 1. Paid $20,000 cash for selling and administrative expenses. 8. Actual overhead costs paid in cash amounted to $55,000. 9. Closed the Manufacturing Overhead account. The amount of over- or underapplied over- hcad was insignificant (immaterial). 10. Made a $5,000 cash distribution to the owners Required a. For Anywhere, Inc., record the events in the financial statements model like the one shown below. s.o. En t, whd Equity Assets Cash + MOH + Raw M. + WIP + F. Goods = C. Stk. + Ret. Ear. 200,000 + 0 + 4,000 + 6,000 + 7,000 = 129,000 + 69,000 Rev. - Exp. = Net Inc. NA - NA = NA 23282 Prepare a schedule of cost of goods manufactured and sold. Prepare an income statement and a balance sheet. bater pemeran Rio. JrP 4Explanation / Answer
a)
BALANCE SHEET
$
$
CURRENT ASSETS
RM
14000
WIP
26000
FG
27000
CASH
165000
232000
EQUITY
COMMON STOCK
129000
RETAINED EARNINGS
103000
232000
b)
b)
$
$
Statement of goods manufactured & sold
DM
50000
WAGES
80000
MANU OH
53000
183000
ADD: WIP
6000
LESS: WIP
26000
20000
TRF TO COS
163000
OP FG
7000
ADD GOODS MANU
163000
CL FG
27000
143000
SALES
182000
GROSS PROFIT
39000
UNDER ABSORBED
2000
37000
S& D
20000
NET INCOME
17000
Dividends
-2000
Income for year
15000
a)
ASSETS
EQUITY
CASH
MOH
RAW M
WIP
FG =
COM STK
RETAIN
EARN
200000
0
4000
6000
7000
129000
88000
-60000
+60000
-50000
+50000
-80000
+80000
-53000
+53000
-163000
+163000
+182000
-143000
+39000
-20000
-20000
-55000
+55000
-2000
-2000
-2000
-2000
165000
0
14000
26000
27000 =
129000
103000
BALANCE SHEET
$
$
CURRENT ASSETS
RM
14000
WIP
26000
FG
27000
CASH
165000
232000
EQUITY
COMMON STOCK
129000
RETAINED EARNINGS
103000
232000
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