Franklin Manufacturing Corporation was started with the issuance of common stock for $80,000. It purchased $7,300 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.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $ 1,300 2,000 2,800 $ 6,100 Direct Labor $ 2,100 3,800 2,000 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $9,800 cash. Franklin paid $500 for selling and administrative expenses. Actual factory overhead was $5,930. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d-1. Prepare a schedule of cost of goods manufactured and sold for Year 1. d-2. Prepare an income statement for Year 1. d-3. Prepare a balance sheet for Year 1.

Franklin Manufacturing Corporation was started with the issuance of common stock for $80,000. It purchased $7,300 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.) Job 1 Job 2 Job 3 Total Direct Raw Materials Used $ 1,300 2,000 2,800 $ 6,100 Direct Labor $ 2,100 3,800 2,000 $ 7,900 Factory overhead is applied using a predetermined overhead rate of $0.70 per direct labor dollar. Jobs 2 and 3 were completed during the period and Job 3 was sold for $9,800 cash. Franklin paid $500 for selling and administrative expenses. Actual factory overhead was $5,930. Required a. Record the preceding events in a horizontal statements model. The first event for Year 1 has been recorded as an example. c. Record the closing entry for over- or underapplied manufacturing overhead in the horizontal statements model, assuming that the amount is insignificant. d-1. Prepare a schedule of cost of goods manufactured and sold for Year 1. d-2. Prepare an income statement for Year 1. d-3. Prepare a balance sheet for Year 1.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 12PA: The following data summarize the operations during the year. Prepare a journal entry for each...

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