Sérvice and Manufacturing Entitie ms. Inc., acquired a subsidia dem modem that e
ID: 2596292 • Letter: S
Question
Sérvice and Manufacturing Entitie ms. Inc., acquired a subsidia dem modem that enables users to acc wirelesace was drawn Irom the accounts of the ary named Anywhere, Inc. (Al). Al manufactures bes users to access the Internet through cell phones. The following drawn from the accounts of the st Cash Raw materials inventory Work in process inventory Finished goods inventory Common stock Retained earnings Totals 200,000 4,000 $129,000 88,000 $217000 $217000 ubsidiary completed the folowing fransactions during 2 The subsidiary completed the follow 1. Paid S60,000 cash for direct raw materials 2. Transferred S50,000 of direct raw materials to work in process 3. Paid production employees $80,000 cash. 4. Applied $53.000 of manufacturing overhead costs to work in process 5. Completed work on products that cost $163,000. 6. Sold products that cost $143,000 for $182,000 cash. Record the recognition of revenue in a row labeled 6a and the cost of goods sold in a row labeled 6b 7. 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- head 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 Equity Cash + MOH + Raw M. + WIP + EGoods C. Stk. + Ret. Ear. Rev. 200,000 04,000 6,0007,000 129,000 Assets - Exp. Net Inc. NA 88,000 NA NA Prepare a schedule of cost of goods manufa Prepare b. Prepa c.Explanation / Answer
a. Anywhere Inc.
Transactions during 2014
-
50,000
-
2,000
-
5,000
b. Anywhere Inc.
Schedule of Cost of Goods Manufactured and Sold
For the year ended December 31, 2014
c. Anywhere Inc.
Income Statement
For the year ended December 31, 2014
Anywhere Inc.
Balance Sheet
December 31, 2014
Transaction / Event Cash MOH RM WIP FG = C. Stock RE Rev - Exp Net Inc Beginning Balances 200,000 0 4,000 6,000 7,000 129,000 88,000 1. - 60,000 + 60,000 2.-
50,000
+ 50,000 3. - 80,000 + 80,000 4. - 53,000 + 53,000 5. - 163,000 + 163,000 6. + 182,000 - 143,000 + 1,82,000 - 143,000 7. - 20,000 - 20,000 8. - 55,000 + 55,000 9. - 2,000-
2,000
10.-
5,000
- 5,000 Totals 162,000 0 14,000 26,000 27,000 = 129,000 83,000 182,000 - 165,000 17,000Related Questions
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