Problem 11-19A Manufacturing cost flow for one-year perlod LO 11-1, 11-2, 11-3 B
ID: 2530521 • Letter: P
Question
Problem 11-19A Manufacturing cost flow for one-year perlod LO 11-1, 11-2, 11-3 Benson Manufacturing started in 2018 with the following account balances: Cash Common stock Retained earnings Raw materials inventory Work in process Finished goods inventory (328 units $6.18 each) $5,600 3,682 5,988 1,288 838 1,952 inventory Transactions during 2018 1. Purchased $2,920 of raw materials with cash. 2. Transferred $3,850 of raw materials to the production department. 3. Incurred and paid cash for 230 hours of direct labor@ $15.70 per hour. 4. Applied overhead costs to the Work in Process Inventory account. The predetermined overhead rate is $16.50 per direct labor hour 5. Incurred actual overhead costs of $3,900 cash 6. Completed work on 1,300 units for $5.70 per unit. 7. Paid $1,040 in selling and administrative expenses in cash. 8. Sold 1,300 units for $10,400 cash revenue (assume FIFO cost flow). 9. Benson charges overapplied or underapplied overhead directly to Cost of Goods Sold. Requirec a. Record the preceding events in a horizontal statements model. The beginning balances are shown as an example b. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2018 Complete this question by entering your answers in the tabs below Req B CGM Sched Req B IncReq B Bal Req A Stmt Sheet Record the preceding events in a horizontal statements model. The beginning balances are shown as an example. (Enter decreases to account balances with a minus sign Assets Equity RetainedRevenue Ea Event Cash + Work in Finished Goods Raw - ExpenseNet Income Stock B.B S 5,600+ 830| +| $ 1.952:| $ 3.882| |$ 5.900 2.Explanation / Answer
a.
Cost of goods sold = (320 x $6.10) + (980 x $5.70) = 1952 + 5586 = $7538
b.
Assets = Equity Event No. Cash + Manufacturing Overhead + Raw Materials + Work in Process + Finished Goods = Common Stock + Retained Earnings Revenue - Expense = Net Income B.B. 5600 + + 1200 + 830 + 1952 = 3682 + 5900 - = 1 -2920 + + 2920 + + = + - = 2 + + -3850 + 3850 + = + - = 3 -3611 + + + 3611 + = + - = 4 + -3795 + + 3795 + = + - = 5 -3900 + 3900 + + + = + - = 6 + + + -7410 + 7410 = + - = 7 -1040 + + + + = + -1040 - 1040 = -1040 8 10400 + + + + = + 10400 10400 - = 10400 + + + + -7538 = + -7538 - 7538 = -7538 9 + -105 + + + = + -105 - 105 = -105 E.B. 4529 + 0 + 270 + 4676 + 1824 = 3682 + 7617 10400 - 8683 = 1717