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PREHENSIVE PROBLEM Modems, dem that ca n 0.000 cash for direct raw material od 50,000 of direct production employees $80,000
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Answer #1

Part 1)

The completed table is given as follows:

Assets = Equity
Event Cash + MOH + Raw M. + WIP + F.Goods = C. Stk. + Ret. Ear. Rev. - Exp. = Net Inc.
Beg. Bal. 200,000 + 0 + 4,000 + 6,000 + 7,000 = 129,000 + 88,000 NA - NA = NA
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 = + - =
6a 182,000 + + + + = + 182,000 182,000 - = 182,000
6b + + + + -143,000 = + -143,000 - 143,000 = -143,000
7 -20,000 + + + + = + -20,000 - 20,000 = -20,000
8 -55,000 + 55,000 + + + = + - =
9 + -2,000 + + + = + -2,000 - 2,000 = -2,000
10 -5,000 + + + + = + -5,000 - =
Total $162,000 + $0 + $14,000 + $26,000 + $27,000 = $129,000 + $100,000 $182,000 - $165,000 = $17,000

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Part 2)

The schedule is prepared as below:

Schedule of Cost of Goods Manufactured and Sold
Beginning Raw Materials Inventory 4,000
Add: Purchases 60,000
Raw Materials Available for Use 64,000
Less: Ending Raw Materials Inventory -14,000
Direct Raw Materials Used 50,000
Direct Labor 80,000
Overhead (Actual) 55,000
Total Manufacturing Costs 185,000
Add: Beginning Work in Process Inventory 6,000
Total Work in Process Inventory 191,000
Less: Ending Work in Process Inventory -26,000
Cost of Goods Manufactured 165,000
Add: Beginning Finished Goods Inventory 7,000
Cost of Goods Available for Sale 172,000
Less: Ending Finished Goods Inventory -27,000
Cost of Goods Sold $145,000

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Part 3)

The income statement and balance sheet is given as follows:

Anywhere Inc.
Income Statement
For the Year Ended 2014
Sales Revenue 182,000
Less: Cost of Goods Sold -145,000
Gross Margin 37,000
Less: Selling and Administrative Expenses -20,000
Net Income $17,000

____

Anywhere Inc.
Balance Sheet
December 31, 2014
Assets:
Cash 162,000
Raw Materials Inventory 14,000
Work in Process Inventory 26,000
Finished Goods Inventory 27,000
Total Assets $229,000
Stockholder's Equity:
Common Stock 129,000
Retained Earnings 100,000
Total Stockholder's Equity $229,000
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